Hmm...adding to what that has been already said...
"1. An electromagnet is formed." is in fact true also. But the
question seems to be asking about the force a charge experiences
when passing through a magnetic field. So "2." will be a better
answer.
"2. The conductor experiences a force." is not always true. For
example if you only have a constant current passing
through a conductor, there will not be a force due to the magnetic
field, since there is no magnetic field in the first place. Hence
the option "2." is unique to this scenario and most likely is the
answer...
The somewhat general principle is that if you have some charges
moving in a magnetic field then that some charges will experience a
force perpendicular to both the velocity of the charges and the
direction of the magnetic field.
Overall I find this question somewhat unclear in what they want,
but still you can roughly guess they are asking for "2."
Lenz's law is a statement of the conservation of energy. For the
general law for time varying magnetic fields creating 'opposing'
electric fields, that's Faraday's law. Lenz's law is included in
Faraday's law.
:D