Final answer:
Riga, known as "the Paris of the Baltics," is the capital of Latvia, one of the three Baltic states that declared independence from the Soviet Union in 1991 and joined NATO and the EU in 2004. (Option 2).
Step-by-step explanation:
The city of Riga, once known as "the Paris of the Baltics," is the capital of Latvia. This country, along with its Baltic neighbors Estonia and Lithuania, gained independence from the Soviet Union in 1991.
After their independence, these countries shifted their focus to Western Europe in terms of trade and development. All three of the Baltic states joined the North Atlantic Treaty Organization (NATO) and the European Union (EU) in 2004, solidifying their transition from Soviet republics to market economies with democratic governments.
The shift in economic orientation came after a tumultuous history, in which the Baltic states were incorporated into the USSR under the Molotov-Ribbentrop pact in 1939, then occupied by German forces during World War II, and later reclaimed by the Soviets. (Option 2).