Final answer:
In Photoshop, when a selection is made, adjustments affect only the inside of that selection, not the outside or other layers.
Step-by-step explanation:
When part of an image is selected in Photoshop, adjustments will only affect the inside of the selection. This means that the correct answer to the question is 2) Inside the selection. When a selection is made, anything within the selected area can be edited, transformed, or adjusted without influencing the rest of the image. This is one of the foundational features of layers and selections within Photoshop, allowing users to manipulate parts of an image with precision.