Spermiogenesis is the process of formation of:

The correct answer is Option (1) → Sperms from spermatids

Option (1) Sperms from spermatids — Correct. Spermiogenesis is the change of the round spermatids into sperms (spermatozoa), which get a head, middle piece and tail.

NCERT Extract:
Gametogenesis – “… The secondary spermatocytes undergo the second meiotic division to produce four equal, haploid spermatids (Figure 2.5). … The spermatids are transformed into spermatozoa (sperms) by the process called spermiogenesis. After spermiogenesis, sperm heads become embedded in the Sertoli cells, and are finally released from the seminiferous tubules by the process called spermiation.”