The polluting potential of waste water is determined by:

Biochemical oxygen demand

The correct answer is Option (1) → Biochemical oxygen demand  

While growing, microbes consume the major part of the organic matter in the effluent. This significantly reduces the BOD (biochemical oxygen demand) of the effluent. BOD refers to the amount of the oxygen that would be consumed if all the organic matter in one liter of water were oxidised by bacteria. The sewage water is treated till the BOD is reduced. The BOD test measures the rate of uptake of oxygen by micro-organisms in a sample of water and thus, indirectly, BOD is a measure of the organic matter present in the water. The greater the BOD of waste water, more is its polluting potential.