Final answer:
The more children believe that people can change their personalities, the more they judge others as either 'good' or 'bad'. Therefore, the correct option is 2.
Step-by-step explanation:
The more children believe that people can change their personalities, the more they judge others as either 'good' or 'bad'. Research has shown that when individuals hold the belief that personalities can change, they tend to rely more on_snap judgments and label others based on their perceived character. This can lead to quick judgments of whether someone is 'good' or 'bad' without considering the complexity of their personality.