During transmission of electrical energy by transformer, near the con…

The correct answer is Option (2) → the voltage is stepped down

Power is sent over long lines at a very high voltage and correspondingly low current, which keeps the \( I^{2}R \) loss in the lines small. Near the consumer this high voltage is unsafe and unsuitable for appliances, so a step-down transformer lowers it (for example to 230 V). For an ideal transformer \( VI \) stays the same, so the current rises as the voltage falls.

NCERT (2026-27):
Transformers – “… The large scale transmission and distribution of electrical energy over long distances is done with the use of transformers. The voltage output of the generator is stepped-up (so that current is reduced and consequently, the I²R loss is cut down). It is then transmitted over long distances to an area sub-station near the consumers. There the voltage is stepped down.”