Sergio, a sole proprietor, purchased a van for $35,000 to use exclusively in his delivery business. Six months later, he sold the van for $38,000. Sergio's $3,000 gain from the sale of this property should be reported as:

Gross receipts or sales on Schedule C, Part I.

A gain from the sale or exchange of property used in a trade or business on Form 4797, Part I.

An ordinary gain on Form 4797, Part II.

A gain from the disposition of property on Form 4797, Part III.