The correct option is B (2)
Since it liberates carbon dioxide with aq sodium bicarbonate solution, it is a carboxylic acid.
It is optically active. On reduction with lithium aluminum hydride, the COOH group is reduced to −CH2COOH group.
Thus the chiral carbon will now have two −CH2COOH groups.
Hence, it is no longer chiral.
Hence, compound X is represented by structure 2.