The magnetic field \( B \) in a solenoid is defined by \( B = \mu_0 n I \), where \( \mu_0 \) is the permeability of free space, \( n \) is the number of turns per unit length, and \( I \) is the current.
Step 1: Magnetic field with inserted material.
Upon inserting a material with magnetic susceptibility \( \chi_{mg} \), the magnetic field intensifies. The new field, \( B' \), is calculated as \( B' = B (1 + \chi_{mg}) \). Here, \( B' \) represents the enhanced magnetic field strength, \( B \) is the field strength prior to material insertion, and \( \chi_{mg} \) is the material's magnetic susceptibility.
Step 2: Calculating the percentage increase in the magnetic field.
The percentage increase is determined by the ratio of the field's increment to its original value, multiplied by 100:
\[
\text{Percentage increase} = \left( \frac{B' - B}{B} \right) \times 100 = \chi_{mg} \times 100.
\]
Step 3: Substituting the magnetic susceptibility value.
Given \( \chi_{mg} = 1.2 \times 10^{-5} \), we substitute this into the formula:
\[
\text{Percentage increase} = 1.2 \times 10^{-5} \times 100 = 1.2 \times 10^{-3} %.
\]
Step 4: Stating the final result.
The magnetic field exhibits a percentage increase of:
\[
\frac{6{5} \times 10^{-3} % }.
\]
Consequently, option (1) is the correct answer.