Given the graph of Time Vs. Population, you can identify that the x-axis represents the Time (in years), and the y-axis represents Population (in thousands),
Notice that, in this case, when:

The corresponding y-value is:

And when:

The y-value is:

Therefore, you can identify that as the number of years decreases from 2 to 1, the population increases.
Hence, the answer is: First option.