Final answer:
The rm command's -r option is used to recursively remove a directory and all of its contents.
Step-by-step explanation:
The rm command in Unix and Linux is used to remove files or directories from the file system. To remove a directory along with all of its subdirectories and files, you would use the -r option, which stands for 'recursive'. Therefore, the correct answer to the question 'Which option of rm command is used to remove a directory with all its subdirectories?' is option 4) -r.