When two aircraft are converging at approximately the same altitude, which aircraft has the right-of-way according to KCAA Rules of the Air?

1. The aircraft that has the other on its right shall give way.
2. The aircraft that has the other on its left shall give way.
3. The faster aircraft has the right-of-way and the slower aircraft must give way.
4. The aircraft operating under instrument flight rules (IFR) always has the right-of-way.