I did it last month so comment on that exam but there are some pretty strangely worded questions in the syllabus so i sympathise. It's usually one that i find i do better than i think i have done in, so hopeully you'll be the same.
I think answer 2 is probably the right one there. The point they're trying to emphasize is that what is a correct decision made at one point may not be as time/distance/other factors pass and you shouldn't blindly stick to it but should reevaluate the situation in light of new events.