The correct preposition to fill in the blank is: OPTION 4"of"
The sentence would be: "She certainly was merry company as she had the gift of the gab."
The phrase "the gift of the gab" is an idiomatic expression that means the ability to speak eloquently and persuasively. In this context, "of" is the appropriate preposition to connect "the gift" with "the gab" in the expression.