Step 1: Relate the shear force on the key to the transmitted torque.
The torque is carried across the key at the shaft surface, a radius \(d/2\) from the centre, so the tangential shearing force is \[ F = \frac{T}{d/2} = \frac{2T}{d} \]
Step 2: Write the torque directly in terms of the shear stress.
The key shears on a plane of width \(w = d/4\) and length \(l\), so the shearing force can also be written as \(F = \tau \times (w \times l) = \tau \times \dfrac{d}{4} \times l\). Since \(T = F \times d/2\), substituting gives: \[ T = \tau \times \frac{d}{4} \times l \times \frac{d}{2} = \frac{\tau \, l \, d^2}{8} \]
Step 3: Solve for the shear stress.
Rearranging the above equation directly for \(\tau\): \[ \tau = \frac{8T}{l d^2} \]
This matches option (3).