Final answer:
To insert a picture into a SmartArt shape, you select a layout after creating the SmartArt shape and before inserting the picture. Thus, the correct step is 2: Selecting a layout.
Step-by-step explanation:
When working with SmartArt in Microsoft Office programs, you will need to select a layout before you can insert a picture into a SmartArt shape. The correct sequence of steps to insert a picture into a SmartArt graphic would involve creating the SmartArt shape first, then selecting a layout that supports picture insertion, and finally inserting the picture. Therefore, the answer to the question is that you select a layout to insert a picture into a SmartArt shape after creating the SmartArt shape but before inserting the picture, which corresponds to step 2: Selecting a layout.