Step 1: Read what is being asked.
I need the theory behind Morley's study, and I match it to the field the passage names.
Step 2: Go back to the passage.
The passage links Morley with Hall and calls his work a model for later reception studies. The method was to let audience groups watch a show and then interpret it, which is the heart of reception work.
Step 3: Test the choice "Dominant Theory" (option 1).
No. Dominant names a reading position, not a theory that a publication can be built on.
Step 4: Test the choice "Reception Theory" (option 2).
Yes. Studying how real audience groups interpret a message is reception theory, and the passage uses the term reception studies.
Step 5: Test the choice "Development Theory" (option 3).
No. Nothing in the passage deals with development of countries or media for development.
Step 6: Test the choice "Entertainment Theory" (option 4).
No. Entertainment is not discussed as a theory in the passage.
Final Answer:
Option 2 is the only one the passage supports.
\[ \boxed{\text{Option 2}} \]