Is Partnership firm having a separate legal entity from its partners?

The correct answer is option 2- No, it does not have a separate legal entity.

A partnership firm has no separate legal entity.

Persons who have entered into partnership with one another are individually called ‘partners’ and collectively called ‘firm’. The name under which the business is carried is called the ‘firm’s name’. A partnership firm has no separate legal entity, apart from the partners constituting it.