LIC AAO Model Paper 8

Deplete (Verb) means reduce greatly the quantity, size, power or value of (something).
For example,
(i) Our stock of food is greatly depleted.
(ii) This expense has depleted our funds.
Exhaust (Verb) means use up completely; make empty; take out the contents of : exhaust a well.
For example.
The money he had, was exhausted.
So. the answer is (2)