Explanation:

Two streams namely Chandra and Bhaga rise on the opposite sides of the Baralacha pass at an elevation of 4,891 metres and meet at Tandi at an elevation of 2,286 metres to form the river Chenab. The Chenab rises from the South-East and Bhaga from the North-West of the Baralacha pass.

• Chandra`and Bhaga is a major river that flows in India and Pakistan, and is one of the 5 major rivers of the Punjab region. It forms in the upper Himalayas in the Lahaul and Spiti district of Himachal Pradesh state, India, and flows through the Kishtwar district of Jammu region in Indian state of Jammu and Kashmir into the plains of the Punjab, Pakistan, before flowing into the Indus River near the city of Uch Sharif. The waters of the Chenab were allocated to Pakistan under the terms of the Indus Waters Treaty.

Hence option 2nd is correct.