To solve this problem, we need to understand the relationship between the peak voltage and the RMS (Root Mean Square) voltage of an AC source.$\\$The peak voltage $V_{peak}$ is the maximum voltage reached by the AC waveform.$\\$The RMS voltage $V_{RMS}$ is a measure of the effective value of the AC voltage, which is equivalent to a DC voltage that would deliver the same power to a load.$\\$The relationship between the peak voltage and the RMS voltage for a sinusoidal AC waveform is given by:$\\ V_{peak} = \sqrt{2} \cdot V_{RMS} \\$This means that the peak voltage is $\sqrt{2}$ times the RMS voltage.$\\$Therefore, the correct option is:$\\$Option 3: $\sqrt{2}$ times the RMS value of the AC source.