a) How to find the 3rd largest value from a column ( not using stor proc) ?

Answer: have a look at the column and find the first, second and third largest value. Easy

b) Difference between index hint and table hint.

Answer: First one is hint of index and second one is of table.

c) Dynamic Queries and Static Queries.

Answer: Dynamic is changing queries and static is fixed queries

d) Whats the difference between using set and select for setting the value inside the stored procedure.

Answer: is in the question itself.

e) How do you call the nested stored procedure.?

Answer: By name, "nested stored procedure". Mukha don't know that much?