Final answer:
Chromium is the metal known to form compounds with multiple colors, such as green chromium(III) oxide and orange potassium dichromate, due to various oxidation states, the correct option is 1).
Step-by-step explanation:
The metal compound found in multiple colors is chromium. Chromium compounds come in various forms and exhibit a wide range of colors due to the different oxidation states that chromium can assume. For instance, chromium(III) oxide or chromic oxide is often green, while potassium dichromate, which contains chromium in the +6 oxidation state, is bright orange.
Other compounds mentioned, such as iron(II) chloride or ferrous chloride, copper(II) sulfate or cupric sulfate, also have distinct colors; however, chromium is known for a wider variety of colors among its compounds. Transition metal compounds, including those of chromium, exhibit vibrant colors when dissolved in water, providing a visual representation of the concept of electronic transitions within the d-orbitals of the metal ions, which can absorb certain wavelengths of light.