Answer: The correct answer is- 1.) The fossils are an extinct species of elephants, and they’re related to present-day elephants.
As per the information given in the question, Elephant fossils were observed in a region and those elephants do not exist anywhere ( indicating that they have become extinct). As the fossils show similarities to the features of present-day elephants, therefore, this information suggests that they are related ( primarily because of common ancestry) to the present day elephants.
Thus, option 1) is the right answer.