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What does NAI stand for in the context of FDA inspections?

  1. No Action Incorporated

  2. Notably Active Ingredient

  3. No Action Indicated

  4. Notice of Adverse Impact

The correct answer is: No Action Indicated

C, or "No Action Indicated," is the correct answer because it refers to the FDA's determination that during an inspection, there were no observations made that would cause a formal action against the inspected party. A is incorrect because it does not pertain to the FDA or inspection process. B is incorrect because it is not a term used by the FDA. D is incorrect because it is unrelated to the inspection process, and adverse events are typically reported after an inspection is completed.