Step 1: Identify the acronym's meaning.
NABARD is an acronym for National Bank for Agriculture and Rural Development. It functions as India's apex development financial institution.
Step 2: Discard incorrect choices.
- National Bank of Development: This option is incomplete and inaccurate.
- National Bank for Agriculture Development: This option omits the word "Rural".
- National Bank for Rural Development: This option omits the word "Agriculture".
Step 3: State the determination.
Consequently, the accurate full form corresponds to option (2).
Final Answer: \[\boxed{\text{NABARD = National Bank for Agriculture and Rural Development.}}\]