Err, none of them really.
During the compression stroke, both valves are closed and the piston is rising to compress the mixture.
Ans 1. Piston rising to expel burnt gasses through exhaust valve
- This is the exhaust stroke, so it's not this one.
Ans 2. Inlet valve is open and sparking plug is parking to ignite air / fuel mixture
- This answer is garbage. If the plug is sparking to ignite the mixture the inlet valve should be shut.
Ans 3. Piston falling and valve opens to pull in new air fuel mixture
- This is the inlet stroke. Inlet valve should be open, exhaust shut.
Ans 4. Inlet and exhaust valves are used and piston is opening/gasing
- Whilst not correct, this is the least wrong answer. I presume it meant to say "valves are closed". The piston should be rising. Pistons don't open, and pistons don't gas.