One part of the sentence has an error. Choose that part:

than going out

The correct answer is Option (3) → than going out

The correct form should be:--  than visiting my friends

Explanation:
The error lies in parallelism. In the original sentence, "reading" and "going out" are parallel, indicating two activities the speaker prefers. However, the third activity, "visiting my friends," does not match the parallel structure. To correct the sentence, the third activity should also be in the gerund form to maintain parallelism, resulting in "than visiting my friends."