The correct answer is Option (2) → in response to
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In response to (Prepositional Phrase) means as a reaction or answer to something. This correctly establishes a causal relationship where the company's action (the aggressive campaign) was triggered by the negative event (declining sales).
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Contrary to means in opposition to or conflicting with. (The campaign is a reaction, not an opposition, to the sales).
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Instead of means as an alternative to. (Implies the campaign was done instead of the sales, which makes no sense).
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Though (Conjunction) means despite the fact that. (Requires a clause, not a noun phrase, and implies a contrast, not a cause. E.g., Though its sales were declining, the company decided to relax.)
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