Step 1: Treat it as a product.
Write $\displaystyle\int\sec^{-1}x\,dx=\int \sec^{-1}x\cdot1\,dx$ so we can use integration by parts.
Step 2: Choose the parts.
By LIATE take $u=\sec^{-1}x$ and $dv=1\,dx$, so $du=\dfrac{1}{x\sqrt{x^2-1}}\,dx$ and $v=x$.
Step 3: Apply the formula.
$\displaystyle\int u\,dv=uv-\int v\,du=x\sec^{-1}x-\int x\cdot\dfrac{1}{x\sqrt{x^2-1}}\,dx$.
Step 4: Cancel the $x$.
The remaining integral is $\displaystyle\int\dfrac{dx}{\sqrt{x^2-1}}$.
Step 5: Use the standard integral.
$\displaystyle\int\dfrac{dx}{\sqrt{x^2-1}}=\log\left|x+\sqrt{x^2-1}\right|$.
Step 6: Combine the pieces.
Therefore $\displaystyle\int\sec^{-1}x\,dx=x\sec^{-1}x-\log\left|x+\sqrt{x^2-1}\right|+c$, matching option (2).
\[ \boxed{x\sec^{-1}x-\log\left|x+\sqrt{x^2-1}\right|+c} \]