Answer: Option (2) is the correct answer.
Step-by-step explanation:
When steam changes into liquid then this process is known as condensation.
During this process, kinetic energy attained by molecules changes into potential energy. As a result, the excess of energy will be released into the atmosphere. Hence, there will be increase in the surrounding temperature.
This is because condensation is an exothermic process.
Therefore, we can conclude that when steam condenses to water, the surrounding temperature increases.