The correct answer is option 1) i.e. Where are the President and his family members staying? Explanation:
To make questions, we often put the verb before the subject. This is called inversion.
If there is a question word (why, what, where, how, etc.), it goes before the verb.
The format becomes "Where+verb+subject+object".
This is true for sentences with be, sentences that have auxiliary verbs (e.g. They are waiting. She has finished.) and sentences with modal verbs (can, will, should, might, etc.).
Hence, from the given options, the correct option is "Where are the President and his family members staying?".
​​Correct Sentence: Where are the President and his family members staying?