Capillarity: If a tube of the very narrow bore (called capillary) is dipped in a liquid, it is found that the liquid in the capillary either ascends or
descends relative to the surrounding liquid. This phenomenon is called capillarity.
The root cause of capillarity is the difference in pressures on two sides of (concave and convex) curved surface of the liquid.
EXPLANATION:
From above it is clear that the phenomenon of rising or fall of liquid level inside a capillary tube when it is dipped in the liquid is called capillary
action.
The capillary actions due to surface tension.
Water rises from roots to leaves in plants by capillary action. Therefore option 2 is correct.