If the fair market value $($FMV$)$ of gifted property on the date of the gift is less than the donor's adjusted basis, what is used as the basis if the property is later sold at a gain?

The donor's purchase price.

The FMV of the property on the date of the gift.

The lower of the donor's adjusted basis or the FMV on the date of the gift.

The donor's adjusted basis on the date of the gift.