Final answer:
When non-conservative forces do work, total mechanical energy is lost as it is converted to other forms such as thermal energy.
Step-by-step explanation:
When non-conservative forces do work, energy is transformed from kinetic to potential (or vice versa). However, mechanical energy may not be conserved when nonconservative forces act. For example, when a car is brought to a stop by friction on level ground, it loses kinetic energy, which is dissipated as thermal energy, reducing its mechanical energy.
The correct option is Option 2: Total mechanical energy is lost. When nonconservative forces do work, energy is converted to other forms such as thermal energy, so the total mechanical energy is not conserved.