Step 1: Recall equivalent definitions.
Reduction = gain of electrons, loss of oxygen, gain of hydrogen, or \(\downarrow\) oxidation number.
Step 2: Evaluate options.
(1) Gain of oxygen \(\Rightarrow\) oxidation (not reduction).
(2) Increase in oxidation state \(\Rightarrow\) oxidation.
(3) Gain of hydrogen \(\Rightarrow\) reduction (correct).
(4) Loss of electrons \(\Rightarrow\) oxidation (reduction is gain of electrons).
Final Answer:
\[
\boxed{\text{gains hydrogen}}
\]