The major product formed in the following reaction is

Concept:

The reaction follows McMurry Mechanism  

McMurry Reaction:

• It's the reaction in which reductive dimerization of carbonyl compounds gives alkenes in the presence of TiCl3 and a reducing agent like Zn/Cu or LiAlH4.
• The reaction is inactive in finely divided Ti but works in a faster rate in TiCl3 + AlCl3 as it gives an electron rich Ti (0) particle.
• The reaction proceeds in two steps, ​radical coupling followed by deoxygenation on the surface of Ti(0). 

                Example: 
​

Explanation: 

The mechanism of the reaction involves radical bond cleavage followed by hydrolysis gives cyclic ketone.

Conclusion: 

Therefore option (2) is the correct one.