Step 1: Defining SAARC.
SAARC, established in 1985, is an organization of South Asian nations aimed at promoting regional cooperation and economic development.
Step 2: Full form of SAARC.
The correct full form of SAARC is South Asian Association for Regional Cooperation.
Step 3: Verifying Other Options.
Option (2): Southeast Asian Alliance for Regional Cooperation is incorrect as SAARC is South Asian, not Southeast Asian.
Option (3): South American Alliance for Resource Control is unrelated to SAARC.
Option (4): South Asian Agency for Rural Cooperation is not the correct expansion.