Explanation:

Recently, the Prime Minister of India has been conferred by Bhutan’s highest civilian award, 'Order of the Druk Gyalpo' also known as “Ngadag Pel gi Khorlo".

• The announcement of the award coincided with the occasion of the 114th National Day of Bhutan.
• This is the highest decoration of Bhutan and is awarded in recognition of a lifetime of service to the people and the Kingdom of Bhutan.
• Order of the Dragon King was founded on 7th November 2008, to reward those who devoted a lifetime of service to the nation and people of Bhutan.
• The honours exist in two categories. Order of the Dragon King is the pinnacle of the honour system in Bhutan and also takes precedence over all other orders, medals and decorations.

Hence option 2nd is correct.