The correct answer is Shaurya Chakra.

• The Ashok Chakra Class-III was renamed as the Shaurya Chakra in 1967.
  • The medal was originally established on 4 January 1952 as the "Ashoka Chakra, Class I".
  • As the first step of a three-class sequence of non-combatant bravery decorations.
  • In 1967, these decorations were removed from the "class-based" system and renamed as the Ashoka Chakra, and Shaurya Chakra. 
  • The Ashoka Chakra is India's highest peacetime military decoration awarded for valour, courageous action or self-sacrifice away from the battlefield.
  • Flt. Lt. Suhas Biswas was the first Indian Air Force officer to be awarded the Ashoka Chakra.
  • A recipient can be awarded the Kirti Chakra or Shaurya Chakra in addition for separate acts of gallantry.
• Hence, option 1 is correct. 

• Kirti Chakra :
  • Kirti Chakra was known as Ashok Chakra, Class II before 1967.
  • The Kirti Chakra is an Indian military decoration awarded for valour, courageous action or self-sacrifice away from the field of battle.
  • It may be awarded to civilians as well as military personnel, including posthumous awards.
  • It is the peacetime equivalent of the Maha Vir Chakra.
• Mahavir Chakra :
  • The Maha Vir Chakra is the second-highest military decoration in India, after the Param Vir Chakra.
  • It is awarded for acts of conspicuous gallantry in the presence of the enemy, whether on land, at sea or in the air.
  • It replaced the British Distinguished Service Order.
  • The medal may be awarded posthumously.
• Vir Chakra :
  • Vir Chakra is an Indian gallantry award presented for acts of gallantry in the presence of the enemy on the battlefield.
  • It replaced the British Distinguished Service Cross, Military Cross and Distinguished Flying Cross.
  • Award of the decoration carries with it the right to use Vr.C. as a postnominal abbreviation.