1) option B. Emmy observes that Albert's ship is shorter than her own ship.
2) option B. Albert observes that Emmy's ship is shorter than her own ship
Step-by-step explanation:
Applying the principle of length contraction where the length of a moving object is seen as being contracted (shorter than its real length),the length of the object in the rest frame does not appear to change.
In this case, the space racer in his own ship measures a reduced length of the other ship flying past it at a high but constant speed. Moreover, the space racer in a ship measures the real length of his own ship and not a contracted length.
Therefore, Emmy will observe that Albert's ship is shorter than her own ship while Albert will also observe that Emmy's ship is shorter than his own ship. It is the principle of length contraction that holds