Symbiosis National Aptitude Test SNAP 2013 Paper

Time between 1 p.m. on Tuesday to 1 p.m. on Thursday = 48 hrs.
The watch gains (1 + 2) = 3 minutes in 48 hrs.
⇒ it gains 1 min, in 16 hrs.
Hence, it will show correct time at 5 a.m. on Wednesday.