what is the correct answer in this question the answer key said that the option that is correct is 2

The image formed in the rear view mirror i.e. by convex mirror is very small(diminished) and always virtual and it appears that object is at very large distance from the vehicle or mirror but actually it is very near to the vehicle or mirror.
The warning is mentioned in the mirrors so that the driver can accordingly make adjustments and take a well calculated decision.
So the more accurate and precise answer is option (2)

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