Concept:
Photochemical smog forms due to reaction of sunlight with pollutants like nitrogen oxides and hydrocarbons.
Step 1:
PAN stands for:
\[
\text{Peroxyacetyl nitrate}
\]
Step 2:
PAN is a major component of photochemical smog.
It causes:
• Eye irritation
• Respiratory problems
Step 3:
• CFC mainly damages ozone layer
• Heavy metals cause toxicity
• Fused benzene compounds are pollutants but not main smog component
Step 4:
Thus correct answer is:
\[
\boxed{\text{PAN}}
\]
\[
\boxed{\text{Correct Option = (2)}}
\]