Option 1: Karl Marx is not the correct answer. Although Marx was a prominent economist and philosopher during the time of the Industrial Revolution, he did not use the term `Industrial Revolution` to describe the changes in British industrial development.

Option 2: Georges Michelet is not the correct answer. Georges Michelet was a French historian, and there is no evidence to suggest that he used the term `Industrial Revolution` to describe the changes in British industrial development.

Option 3: Arnold Toynbee is the correct answer. Arnold Toynbee, an economic historian, is credited with being the first to use the term `Industrial Revolution` in English to describe the changes in British industrial development between 1760 and 1820. Toynbee`s work focused on the social and economic impact of the industrial changes during this period.

Option 4: Friedrich Engels is not the correct answer. Although Engels was a close collaborator of Karl Marx and wrote extensively on industrialization and the working class, there is no evidence to suggest that he used the term `Industrial Revolution` to describe the changes in British industrial development.

In conclusion, the correct answer is option 3. Arnold Toynbee was the first to use the term `Industrial Revolution` in English to