The ability to monitor one's own and other's emotions, to discriminate among them and to use the information to guide one's thinking and actions is called:

Emotional intelligence

The correct answer is Option (2) → Emotional intelligence

This concept of Emotional intelligence was first introduced by Salovey and Mayer who considered emotional intelligence as “the ability to monitor one’s own and other’s emotions, to discriminate among them, and to use the information to guide one’s thinking and actions”. Emotional Quotient (EQ) is used to express emotional intelligence in the same way as IQ is used to express intelligence.