Explanation:

Mahayana

• It is one of the two main schools of Buddhism.
• The term Mahayana is a Sanskrit word which literally means "Great Vehicle".
• It believes in the heavenliness of Buddha and Idol worship of Buddha and Bodhisattvas embodying Buddha Nature.
• It originated in northern India and Kashmir and then spread east into Central Asia, East Asia and some areas of Southeast Asia.
• Buddhist schools embedded in China, Korea, Tibet and Japan belong to the Mahayana tradition.

Hinayana

• Literally Lesser vehicle, also known as Abandoned Vehicle or Defective vehicle. It believes in the original teaching of Buddha or Doctrine of elders.
• It does not believe in Idol worship and tries to attain individual salvation through self discipline and meditation.
• Theravada is a Hinayana sect.

Theravada

• It is the most ancient branch of extant Buddhism today.
• It remains closest to the original teachings of the Buddha.
• Theravada Buddhism developed in Sri Lanka and subsequently spread to the rest of Southeast Asia. It is the dominant form of religion in Cambodia, Laos, Myanmar, Sri Lanka, and Thailand.

Vajrayana

• Vajrayana means “The Vehicle of the Thunderbolt”, also known as tantric Buddhism.
• This Buddhist school developed in India around 900 CE.
• It is grounded on esoteric elements and very complex set of rituals compared with the rest of the Buddhist schools.

Hence option 2nd is correct.