The correct answer is the first option.
Horror and suspense are two factors that come together to create psychological suspense. The predominate feeling is bewildering dread by means of a mental plot as well as an ambiguous protagonist which are carefully developed by the author. There's a mental puzzle that the reader is driven to figure out. At the same time, the reader seems to know more than the main character does. However, nothing is what it seems... Consequently, the reader keeps surprised and astonished all the time.