Final answer:
Option 1 is the correct revision because it uses commas correctly to set off the introductory phrase and separate it from the main clause.
Step-by-step explanation:
The correct revision of the sentence is option 1: When the real estate agent saw the terrible condition of the Freeman's home, she knew that she was going to have to convince them to lower the price to a more realistic amount. The commas are used correctly in this revision to set off the introductory phrase 'When the real estate agent saw the terrible condition of the Freeman's home' and to separate it from the main clause 'she knew that she was going to have to convince them to lower the price to a more realistic amount.'
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