Explanation:

1st option is correct.
Shiv Temple of Baijnath is associated with Ravan.
Neighbouring towns are Palampur Kangra and Joginder Nagar in Mandi district. According to the legend, it is believed that during the Treta Yug, Ravana in order to have invincible powers worshiped Lord Shiva in the Kailash. In the same process, to please the almighty he offered his ten heads in the havan kund. Influenced by this extra ordinary deed of the Ravana, the Lord Shiva not only restored his heads but also bestowed him with powers of invincibility and immortality.