Alcohols are the compounds containing hydroxyl group attached to the alkyl group, whereas phenols are hydroxyl derivatives of aromatic hydrocarbons in which hydroxyl group is directly attached to carbon atom of aromatic ring. Alcohols are versatile compounds and can behave both as nucleophiles as well as electrophiles.
Phenols, too are reactive compounds and are known to undergo reactions on : phenolic group, benzene ring as well as various other name reactions like Reimer-Tiemann reaction, Kolbe's reaction etc.

The correct answer is option 3.

The reaction given in the question is dehydration of alcohol.

The dehydration reaction of alcohols to generate alkene proceeds by heating the alcohols in the presence of a strong acid, such as sulfuric or phosphoric acid, at high temperatures.

Tertiary \(–OH\) protonate to form alkyloxonium ions. However, in this case the ion leaves first and forms a carbocation as the reaction intermediate. The water molecule (which is a stronger base than the \(HSO_4^-\) ion) then abstracts a proton from an adjacent carbon, forming a double bond. Notice in the mechanism below that the alkene formed depends on which proton is abstracted: the red arrows show formation of the more substituted 1-methylcyclohexene, while the green arrows show formation of the less substituted methylenecyclohexene. The general rule that more substituted alkenes are more stable than less substituted alkenes, and trans alkenes are more stable than cis alkenes. Therefore, the trans diastereomer will be the product is most abundant.