Final answer:
The Santa Claus theology cannot cope with the existence of evil, which creates a contradiction in the belief of an all-good and all-powerful deity. So, the correct answer is option 1.
Step-by-step explanation:
The problem that the Santa Claus theology cannot cope with is the existence of evil. The Santa Claus theology posits a benevolent and all-powerful deity, but the existence of evil in the world creates a contradiction in this belief. If an all-good and all-powerful deity exists, why would they allow evil to exist? This contradiction has been a longstanding problem in the philosophy of religion.
So, the correct answer is option 1.