Step 1: Conservation of momentum.
The law of conservation of momentum states that the total momentum before and after the explosion remains constant. By solving for the momentum of the third fragment, we find its velocity to be \( 20 \sqrt{5} \, \text{m/s} \).
Step 2: Conclusion.
The velocity of the third fragment is \( 20 \sqrt{5} \, \text{m/s} \), which corresponds to option (2).