Lets get started :)

The first step has been done correctly.
Leaving us with:

The second step, however, has been done incorrectly.
Why?
Because what has been applied on the exponent is product rule, where the exponents should get added and not multiplied
So, we should have an answer like this:

So your answer will be the second option:
Step 2, the exponents in the denominator are multiplied