Geo-stationary satellite is one which

Calculation:

A geo-stationary satellite is one that revolves around the Earth at a suitable height, with the same angular velocity as the Earth. This allows it to remain above the same point on the Earth's surface at all times, making it appear stationary from the Earth's surface.

Hence, the correct option is Option 3: It revolves round the Earth at a suitable height with the same angular velocity and in the same direction as the Earth does about its own axis.