The correct answer is Stage 2: Individualism, Instrumental Purpose, and Exchange.
According to Kohlberg's theory of moral development, individuals in the individualism, instrumental purpose, and exchange stage of moral development (Stage 2) display egocentric behavior, and awareness of one's own needs and others' needs. These individuals label what is right or wrong mainly in terms of how it personally affects them. What is fair for them is an exchange or deal between people that is equal.