In England, after industrialisation, dark-winged (melanised) moths ou…

The correct answer is Option (2) → Tree trunks darkened by smoke and soot hid the dark-winged moths, and predators picked out the white-winged moths

This is the book’s example of natural selection from England. Moths rest on tree trunks, and birds (predators) catch those that stand out against the bark. Moths that match the background are camouflaged and survive to breed. Before industrialisation, the trunks were covered with white lichen; after it, smoke and soot made them dark.

Option (1) Industrial smoke caused mutations that made the white-winged moths dark — Incorrect. Smoke did not cause mutations. Both white-winged and dark-winged moths were already present in the population; the change was in their numbers, decided by which form predators picked out.

Option (2) Tree trunks darkened by smoke and soot hid the dark-winged moths, and predators picked out the white-winged moths — Correct. On dark, soot-covered trunks, the dark-winged moths were hidden, while the white-winged moths were easily seen and eaten by predators. So more dark-winged moths survived and bred.

Option (3) Lichens grew more on tree trunks in polluted areas and hid the dark-winged moths — Incorrect. Lichens do not grow in polluted areas; they are used as indicators of industrial pollution. In industrial areas the lichens disappeared, which left the trunks dark.

Option (4) White-winged moths migrated from industrial areas to rural areas — Incorrect. The change was in survival in the same area, not migration. In rural areas, where there was no industrialisation, the count of melanic (dark) moths stayed low.

NCERT Extract:
What Are the Evidences for Evolution? – “… In a collection of moths made in 1850s, i.e., before industrialisation set in, it was observed that there were more white-winged moths on trees than dark-winged or melanised moths. However, in the collection carried out from the same area, but after industrialisation, i.e., in 1920, there were more dark-winged moths in the same area, i.e., the proportion was reversed.”
What Are the Evidences for Evolution? – “The explanation put forth for this observation was that ‘predators will spot a moth against a contrasting background’. During postindustrialisation period, the tree trunks became dark due to industrial smoke and soots. Under this condition the white-winged moth did not survive due to predators, dark-winged or melanised moth survived. Before industrialisation set in, thick growth of almost white-coloured lichen covered the trees - in that background the white winged moth survived but the dark-coloured moth were picked out by predators. … They will not grow in areas that are polluted.”