Final answer:
An induced emf would exist in a wooden non-conducting loop due to changing magnetic flux, but no current would flow because wood is not conductive. If the loop is entirely removed, neither an induced emf nor current would exist along the path.
Step-by-step explanation:
If we replace loop 2 with a wooden (non-conducting) loop, there would still be an induced electromotive force (emf) in the loop since emf depends on the change in magnetic flux. Nevertheless, despite the existence of an induced emf, there would not be an induced current in the loop because wood is not a conductive material, and electric current requires a conductive path to flow.
When loop 2 is completely removed, the concept of emf applied to a path in space without a physical conductor does not hold; therefore, there is no induced emf along the path that loop 2 used to occupy.
Similarly, with no physical conductor in place, there cannot be an induced current along the path loop 2 used to occupy, because current requires a conductive path and charges to move through that path. The absence of a conductor rules out the possibility of both.