You can choose Attach Project Sources to include metadata that Studio requires to reimport the deployable file as an open Mule project into your workspace. You must keep the Attach Project Sources option selected to be able to import the packaged JAR file back into a Studio workspace. But requirement here is to create smallest deployable archive that will successfully deploy to Cloudhub. Hence we can ignore this option.
We need to select Include project module and dependencies
As actual modules and external dependencies required to run the Mule application in a Mule runtime engine Hence correct answer is Select only below option 2) Include project module and dependencies MuleSoft Doc Ref : https://docs.mulesoft.com/studio/7.5/import-export-packages#exporting-a-studio-project-to-a-deployable-mule-application