If a compass is taken inside a bar magnet exactly at the centre, then in which direction will it point?
Towards 2
Outside a magnet, the magnetic field lines go from north pole to south pole. Inside a magnet however, the magnetic field lines go from south to north pole.
The direction of the magnetic field at any point is given by tangent of field line at that point. Hence, if a compass is placed inside a magnet it will point towards north or towards position 2.