Final answer:
A magnet induces an electric current in a conducting loop due to magnetic induction, and the direction of the induced current opposes the change in magnetic flux through the loop.
Step-by-step explanation:
The effect of a magnet on a conducting loop depends on the interaction between the magnetic field of the magnet and the loop. When a magnet is moved near or through a conducting loop, it induces an electric current in the loop. This is known as magnetic induction. The direction of the induced current depends on the direction of the magnetic field and the motion of the magnet relative to the loop.
According to Lenz's law, the induced current flows in a direction that opposes the change in magnetic flux through the loop. For example, if a north pole of a magnet is approaching a conducting loop, the induced current will flow counterclockwise, creating a magnetic field that opposes the approach of the magnet.
Therefore, the correct answer to the question is 1) The magnet induces a current in the loop.