The puffed-up appearance of dough is due to the production of:

Carbon dioxide gas

The correct answer is Option (1) - Carbon dioxide gas

Microbes especially yeasts have been used from time immemorial for the production of beverages like wine, beer, whisky, brandy or rum. For this purpose the same yeast Saccharomyces cerevisiae used for bread-making and commonly called brewer’s yeast, is used for fermenting malted cereals and fruit juices, to produce ethanol.

The dough, which is used for making foods such as dosa and idli is also fermented by bacteria. The puffed-up appearance of dough is due to the production of CO₂ gas. Similarly the dough, which is used for making bread, is fermented using baker’s yeast (Saccharomyces cerevisiae). A number of traditional drinks and foods are also made by fermentation by the microbes.