Fill in the blank with the correct option, to form(a) meaningful sentence.

The Principal addressed us in the assembly and ________ the rumours of an early summer break.

quashed

The correct answer is Option (2) - quashed

Explanation

Defended :  implies someone argued in favor of the rumors, which isn't likely.

Quashed :  means to put an end to something firmly, which aligns perfectly with shutting down the rumors.

Cleared : can mean providing clarification, but it's not strong enough for addressing rumors.
Rebuked : means to criticize harshly, which might be used towards the rumor starters, but not the rumors themselves.