Option (1)both 1 and 2 is the answer
because in the above reaction Carbon is getting oxidised and Lead oxide is getting reduced..
Oxidation means addition of oxygen or removal of hydrogen.
Reduction means addition of hydrogen or removal of Oxygen.
2PbO + C------------> 2Pb +CO2
So in the above reaction ,
1. Pbo is getting reduced . ( From PbO to Pb ) .
2. C is oxidised (From C to CO2) .