A friend is torn between dropping out early for a Master’s or staying for a 4th-year honours

My friend, currently in his final semester of his 3rd year at MIT-WPU, is facing a pivotal decision. His endgame is to enroll in the Navy, which demands a degree, but then he is considering a master's course at Fergusson College (FC) in the future.

His CGPA currently stands at 6.0. He is in the process of taking his entrance exams; he has planned that on passing the written part, he will complete his studies in the 3rd year and proceed. Nonetheless, in case he fails to clear it, he thinks about remaining in the 4th-year honours programme to obtain a better chance of raising his CGPA to 7.0 or leave for FC.

He is conflicted about whether it is worth his while to continue at MIT-WPU next year (4th year) just to appear on the Honours list and have his CGPA inflated or if he should simply complete the degree after three years and be done with it. Is the master supposed to keep admissions at places like FC, or would he be better served to finish this year at MIT and work wholeheartedly on his Navy preparations by leaving this College after getting a degree?

I would love to hear opinions about the 4th-year experience at MIT-WPU or other experiences related to the perception of the Navy regarding the 3 vs. 4-year degree divide.