Concept:
Small strong nucleophiles favor substitution reactions, whereas bulky bases favor elimination reactions.
Step 1: Reaction with ethoxide ion.
\[
CH_3CH_2O^-
\]
is a strong nucleophile and relatively less bulky.
Hence, it favors:
\[
S_N2
\]
reaction producing an ether.
Step 2: Reaction with tert-butoxide ion.
\[
(CH_3)_3CO^-
\]
is bulky and acts mainly as a base.
Hence, it favors:
\[
E2
\]
elimination to produce an alkene.
Thus, option 2 correctly represents the products.