1. The distance of closest approach in Rutherford scattering occurs when kinetic energy is fully converted to electrostatic potential energy.
2. The formula is $x = \frac{1}{4\pi \epsilon_0} \frac{(2e)(Ze)}{E} = \frac{2 Z e^2}{4\pi \epsilon_0 E}$, where 2e is alpha charge, Ze nucleus charge.
3. Thus, $x \propto \frac{1}{E}$, meaning the distance is inversely proportional to the kinetic energy.
4. For new energy $E' = 0.4 E$, the new distance $x' = x \times \frac{E}{E'} = x \times \frac{1}{0.4} = 2.5 x$.
5. This assumes non-relativistic speeds and point-like particles.
6. Therefore, the correct option is (3) 2.5 x.