Final answer:
The transformer must be separated from combustible material by a minimum distance of 18 inches.
Step-by-step explanation:
The National Electric Code (NEC) specifies the minimum separation distance between a dry type transformer and combustible material to prevent the risk of fire. According to NEC, a 100 kVA dry type transformer with a 4,160 volt primary should be separated from combustible material by a minimum distance of 18 inches (Option 3).