Step 1: Define the lithosphere.
The lithosphere is the rigid, outermost shell of the Earth, consisting of the crust and the upper brittle portion of the mantle. It forms the tectonic plates that float on the semi-fluid asthenosphere below.
Step 2: Eliminate incorrect options.
Large water bodies describe the hydrosphere. The gaseous envelope surrounding Earth is the atmosphere. The zone where life exists is the biosphere.
Step 3: Confirm the answer.
Option 2 correctly describes the lithosphere as the rigid outermost shell composed of crust and brittle upper mantle.
\[ \boxed{\text{the rigid, outermost shell of the earth, composed of the crust and the brittle upper mantle}} \]