Answer:
He realizes that Odysseus was destined to take his eye.
Step-by-step explanation:
The epic narrative "The Odyssey" by Homer is about the journey of Odysseus and his men after the Battle of Troy. Their journey would lead them through encounters with mortals, gods, demons, monsters, etc. testing their very being.
In the given excerpt from the epic, the Cyclops admitted that Odysseus was destined to inflict the physical wound in his eye. He revealed, ". . . he foretold for time to come: my great eye lost, and at Odysseus' hands. . ." But what he didn't expect was that Odysseus would be "small, pitiful and twiggy". Nevertheless, he accepted his fate and invited Odysseus to come back to the island.
Thus, the correct answer is the first option.