Final answer:
Contractors must follow the agency's record schedules as per their contractual obligations, disregarding their own company policies while managing agency records. The correct option is 1.
Step-by-step explanation:
Contractors performing work for an agency are generally expected to follow the agency's record schedules, even if those schedules differ from their own company policies.
This is because while contractors operate as separate entities from the agencies they serve, they must adhere to the specific guidelines and requirements set out in their contractual agreements when handling agency-related documents and records. Failure to follow the agency's record management protocols could result in a breach of contract.