Step 1: Note the two products: methanol (a reduced species) and potassium formate (an oxidised species) come from the same aldehyde.
Step 2: A single substrate giving both an oxidised and a reduced product is the signature of a disproportionation.
Step 3: For aldehydes this base-promoted disproportionation is possible only when there is no \(\alpha\)-hydrogen, which is true for \(HCHO\).
Step 4: This named reaction is the Cannizzaro reaction, so option 3 is correct.