Step 1: Read the endoscopic picture.
The image is taken during cystourethroscopy and shows a small, flat, abnormal mucosal lesion within the lumen rather than a long fibrotic narrowing or a tight ring stricture. When the abnormality is a localised, superficial lesion (for example a small papillary growth, a posterior urethral valve leaflet, or focal abnormal mucosa) the goal of treatment is to destroy the offending tissue, not to widen a passage.
Step 2: Match the lesion to the right tool.
Tissue-destroying interventions delivered through the endoscope are electrosurgical. Fulguration uses a high-frequency electric current (electrocoagulation/diathermy) to char and ablate abnormal mucosa or a lesion under direct vision, sealing the base as it works.
Step 3: Eliminate the lumen-widening options.
• Stenting keeps a lumen patent (e.g. across an obstruction) but removes no tissue.
• Balloon dilatation stretches a stricture radially; again no ablation.
• Internal (optical) urethrotomy incises a urethral stricture to relieve narrowing.
All three address obstruction or stricture, so none fits a finding that calls for destruction of a lesion.
Step 4: Conclusion.
Because the indicated treatment is ablation of abnormal tissue seen endoscopically, the appropriate management is electrosurgical fulguration.
Final answer: Option 3 - Fulguration.