Analyzing standard reduction potentials to determine cell spontaneity and the nature of the net reaction.
LOGIC: 1. Standard electrode potentials given are $E^{\circ}_{Fe^{2+}/Fe} = -0.88 \text{ V}$ and $E^{\circ}_{Ag^+/Ag} = 0.07 \text{ V}$ (in specific conditions). 2. In a spontaneous cell, the electrode with the more negative potential acts as the anode (undergoes oxidation). So, $Fe$ undergoes oxidation: $Fe \rightarrow Fe^{2+} + 2e^-$. 3. The electrode with more positive potential acts as the cathode (undergoes reduction). So, $AgBr$ is reduced: $AgBr + e^- \rightarrow Ag + Br^-$. 4. Spontaneous $E^{\circ}_{cell} = E^{\circ}_{red} - E^{\circ}_{ox} = 0.07 - (-0.88) = +0.95 \text{ V}$. 5. The overall reaction is the sum of these half-reactions: $Fe + 2OH^- + 2AgBr \rightarrow Fe(OH)_2 + 2Ag + 2Br^-$. 6. Comparing with options: Option (4) accurately describes this spontaneous net reaction.