Step 1: Understanding NOW() function. In SQL, the \texttt{NOW()} function retrieves the current system date and time. Step 2: Output format. The function outputs the date and time in a standard timestamp format: \[\text{YYYY-MM-DD HH:MM:SS}\] Step 3: Verify against options. - Option 1: HH:MM:SS → time only; incomplete. - Option 2: YYYY-MM-DD HH:MM:SS → correct, full format. - Option 3: HH:MM:SS YYYY-MM-DD → incorrect order. - Option 4: YYYY-DD-MM HH:MM:SS → incorrect date format.
Final Answer: \[\boxed{\text{NOW() returns date and time in YYYY-MM-DD HH:MM:SS format.}}\]