Bellman Ford and One Olympiad Questions?

Question

I took an Olympiad Exam three days ago. I ran into a nice question as follows.

We know the bellman-ford algorithm checks all edges in each step, and for each edge if,

Answer 1

i think option 3 is incorrect because to know if there is negative weight cycle ,the Bellman ford algorithm needs to run n times. first n-1 times to calculate the shortest path and then one more time to check if there is any improvement in the distances if there are improvements ,it means there is a negative weight cycle.