The largest five-digit number, 99999, divided by 1246 results in 80.25. The integer quotient is 80. Multiplying the divisor by the quotient: 1246 * 80 = 99680. The remainder can be found: 99999 = 1246 * 80 + remainder, or 99999 = 99680 + remainder, thus remainder = 99999 - 99680 = 319. The largest 5-digit multiple is 99999 - 319 = 99680, which aligns with option (1).