Addition of the two octal numbers $36_8$ and $71_8$ results in:

To perform octal addition on $36_8$ and $71_8$:

1. Least Significant Digit (LSD):

Since 7 is within the base-8 digit range ($0-7$), sum is $7$ with carry $0$.

2. Next Digit:

Convert $10_{10}$ to octal:

Sum digit is $2$, with carry $1$ propagated to the next higher place.

3. Most Significant Digit (MSD):

Carry $1$ drops into the hundreds column $\rightarrow 1$.

Combining the digits gives: $127_8$.

Option Analysis: