Explanation:

- In the given code, the letters of the words are arranged alphabetically.

- For 'NORM', rearranging gives 'MNOR'.

- For 'DORSAL', rearranging alphabetically gives 'ADLORS'.

- Therefore, the pattern is to rearrange the letters in alphabetical order.

- To apply this to 'BUDGET':

- Sort letters alphabetically: B, D, E, G, T, U.

Option 2: BDEGTU

- This matches our sorted sequence.

- Other options do not follow alphabetical order.