Choose the segment with the error. If there is no error, choose option 4.
Idli and Sambar/1 make the breakfast/2 in the South./3
A quick way to solve error spotting questions is to test each segment on its own by asking if it could stand as a correct short phrase.
Since segment 2 has the subject-verb mismatch and the other two segments are clean, the error is in segment 2.
Let's summarize:
So option 2 is the answer.