Calculate the total cost for two route options and determine the most cost-effective one. Annexure B is required for Q2.2.1.

The distance is $195 \text{ km}$.
The total toll fee cost is $\text{R}112.00$.
Since no other costs are specified for this route, the total cost for Option 1 is the toll fee.

The distance is $260 \text{ km}$.
There are no toll fees for this route.
The vehicle's running cost (excluding fuel) is $\text{R}3.50$ per km.
The fuel cost is $\text{R}1.75$ per km.
First, calculate the combined cost per kilometre for Option 2:

Now, calculate the total cost for Option 2 by multiplying the cost per kilometre by the distance:

Total Cost (Option 1) = $\text{R}112.00$
Total Cost (Option 2) = $\text{R}1365.00$
Since $\text{R}112.00$ is significantly less than $\text{R}1365.00$, Option 1 is the most cost-effective route.
The most cost-effective route for the company is $\boxed{\text{Option 1 (Via the N2)}}$.