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Explanation:

Option 2 is vague and is therefore not the correct option. The passage mentions that breakthroughs in fundamental research on DNA is available to the public free of cost. The ‘beneficial effects’ of fundamental research on DNA have not been highlighted in the passage.
Options 3 and 4 do not answer the question stem as to why ‘deciphering the structure and functioning of DNA has become a public good’. The options ascribe the ‘public good’ to mean that DNA research should be restricted to public sector research institutions or that they should be made available to such institutions. This distorts the meaning of the word ‘public good’.
The passage mentions, “The deciphering of the structure and functioning of DNA forms the basis of much of modern biotechnology. But this fundamental breakthrough is a ‘public good’ freely accessible in the public domain and usable free of any charge.” This resonates with option 1.
Hence, the correct answer is option 1.