"Toddy" is a traditional drink which is made by-

The correct answer is Option (2) → Fermenting sap from palm

Option (1) Fermenting bamboo-shoots — Incorrect. Bamboo shoots are fermented to make foods, not toddy.

Option (2) Fermenting sap from palm — Correct. Toddy, a traditional drink of parts of southern India, is made by fermenting the sap of palms.

Option (3) Fermenting fishes — Incorrect. Fermented fish is a food, not a drink.

Option (4) Fermenting cheese — Incorrect. Cheese is itself a product of microbes acting on milk; it is not used to make toddy.

NCERT Extract:
Microbes in Household Products – “… A number of traditional drinks and foods are also made by fermentation by the microbes. ‘Toddy’, a traditional drink of some parts of southern India is made by fermenting sap from palms. Microbes are also used to ferment fish, soyabean and bamboo-shoots to make foods. Cheese, is one of the oldest food items in which microbes were used.”