Who is the head of the Union Territory (Puducherry)?

The correct answer is Option (2) → Lt. Governor

Under Article 239, every Union Territory is administered by the President through an Administrator whom the President appoints. In Puducherry (as in Delhi, Jammu and Kashmir, Ladakh and the Andaman and Nicobar Islands) the Administrator is called the Lieutenant Governor, and the Lt. Governor is the head of the Union Territory.

Puducherry also has an elected Legislative Assembly and a Council of Ministers led by a Chief Minister (Article 239A), much like a state, but its constitutional head is the Lt. Governor.