Cloning is the process of generating a genetically identical copy of a cell or an organism or an individual. Hence option 2 is correct.
Cloning happens often in nature, for example, when a cell replicates itself asexually without any genetic alteration or recombination.
Prokaryotic organisms (organisms lacking a cell nucleus) such as bacteria create genetically identical duplicates of themselves using binary fission or budding.
In eukaryotic organisms (organisms possessing a cell nucleus) such as humans, all the cells that undergo mitoses, such as skin cells and cells lining the gastrointestinal tract, are clones, the only exceptions are gametes (eggs and sperm), which undergo meiosis and genetic recombination.
The controversy involved in the generation of cloned embryos, particularly those of humans, which are genetically identical to the organisms from which they are derived, and the subsequent use of these embryos for research, therapeutic, or reproductive purposes.