Vertical line test states the following: Given a graph, if we plot a vertical line on each point of the graph, the graph is the graph of a function if and only if the vertical line touches the graph only at one point.
So, in our case we could draw vertical lines as follows:
note that wherever we draw a line, the line touches the graph only once. This means that the graph is the graph of a function. That is, the first option is correct