The point of view in which narrators tell stories from their own perspectives and using like he, she, they, him, her, the, or it, is called third-person. Option 3 is correct.
Writing in third person meand writing from the third-person point of view, or outsider looking in, and employs pronouns like he, she, it, or they. It differs from the first person, which uses pronouns such as I and me, and from the second person, which uses pronouns such as you and yours.