On retirement of a partner from the partnership firm, goodwill will be credited to the capital A/c of..........

Retiring partner

The correct answer is option 1- Retiring partner.

On retirement of a partner from the partnership firm, goodwill will be credited to the capital A/c of the retiring partner.

When goodwill does not appear in the books of the firm, credit is given to the retiring partner for the share in goodwill by debiting the goodwill account to gaining partners capital accounts (individually) in their gaining ratio. The journal entry is : 
Gaining Partners Capital A/c Dr. (Individually)
          To Retiring Partners Capital A/c
(Share in goodwill of retiring partner adjusted)