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Choosing a discrete value that is near but not exactly at the analog signal level leads to

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Choosing a discrete value that is near but not exactly at the analog signal level leads to

(a) PCM error

(b) Quantization error

(c) PAM error

(d) Sampling error

The question was posed to me in an internship interview.

This is a very interesting question from Pulse Code Modulation in division Formatting and Baseband Modulation of Digital Communications

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Right choice is (b) Quantization error

To explain: One of the limitations of PCM is quantization error which occurs when we choose a discrete value at some near by value and not at the analog signal level.

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