The vehicle’s driving speed should not exceed 40 KPH

What is the meaning of the traffic sign in the following picture?

1. It is a speed restriction that is intended for private vehicles only.
2. The vehicle’s driving speed should not be lesser than 40 KPH.
3. It is a speed restriction that is intended for two-wheelers and trolleys.
4. Correct answer: The vehicle’s driving speed should not exceed 40 KPH.