The given differential equation is:
\[
\frac{d^3 y}{dx^3} - 2 \left( \frac{d^2 y}{dx^2} \right) + xy = 0
\]
1. The order of a differential equation is the highest derivative present in the equation. Here, the highest derivative is \( \frac{d^3 y}{dx^3} \), so the order is 3.
2. The degree of a differential equation is the power of the highest derivative after removing any radicals or fractions. In this equation, the highest derivative is \( \frac{d^3 y}{dx^3} \), and it is not raised to any power other than 1. Therefore, the degree is 1.
Thus, the order is 3, and the degree is 4.
Hence, the correct answer is option (3).