UP Police Constable Exam Model Paper 4

The pattern follows here is:
Given series:

In the 2nd figure as compared to the 1st figure, the circle comes out of the open half-square box and, while the open half-square box is now above the circle and is smaller in shape.
Similarly,
In the 4th figure circle will come out, while the arrow face will be above the circle, as shown in the answer figure below.

Hence, the correct answer is "Option 1".