The National Rural Livelihood Mission (NRLM) aims to improve the livelihood options of the rural poor primarily by promoting self-employment and skill development through the strengthening of self-help groups (SHGs). This approach empowers individuals by facilitating access to financial services, enhancing skills, and creating sustainable livelihood opportunities. The emphasis on SHGs fosters community participation and collective action, which are critical for effective poverty alleviation and economic resilience among rural populations. This is why option 2 is the correct one, as it aligns with NRLM's overarching strategy to enhance livelihoods through empowerment and capacity building.