In ITIL 4, practice capability levels are tied to the maturity of how a practice achieves its purpose. The question refers to "practice capability level 3." To understand this, let's explore the context of capability levels.

Level 1: Initial or Intuitive: This is the most basic level, where a practice is typically ad-hoc and not standardized. It operates on an informal basis and lacks systematic control. This description aligns withOption A("The practice is performed as initial or intuitive").

Level 2: Basic Set of Activities: At this level, the practice systematically starts achieving its intended purpose but often with minimal documentation or governance. It includes a basic but incomplete set of activities. This correlates withOption B("The practice systematically achieves its purpose through a basic set of activities").

Level 3: Well Defined and Organized: A practice at this level is well-defined and operates in a more organized way. It ensures that processes and standards are followed consistently. However, this is not the highest level of capability, and the practice may still lack continuous improvement mechanisms. This matchesOption C("The practice is well defined and achieves its purpose in an organized way").

Level 4: Continual Improvement: This is the highest capability level, where the practice not only achieves its purpose but also incorporates mechanisms for continuous improvement. It evolves to improve the organizational capabilities related to its purpose. This aligns withOption D("The practice is continually improving organizational capabilities associated with its purpose"). At this level, the practice is embedded into the culture of continuous learning and improvement, which is crucial for maintaining organizational effectiveness in the long term.

The correct answer,Option D, represents the highest level of practice maturity, emphasizing continual improvement. This level ensures that the practice is not static but evolves by improving the capabilities needed to fulfill its purpose​​​​.