At the time of retirement of a partner, the difference between the old Profit Sharing Ratio and the new Profit Sharing Ratio is a negative outcome for a remaining partner. It indicates that :

Remaining partner is gaining

The correct answer is option 1- Remaining partner is gaining.

Difference between the old Profit Sharing Ratio and the new Profit Sharing Ratio is called sacrificing ratio. If this is negative then its mean that the remaining partners is gaining.