Step 1: Understanding the problem.
The fundamental frequency \( f \) of a transverse wave on a stretched wire is given by the formula:
\[
f = \frac{1}{2L} \sqrt{\frac{T}{\mu}}
\]
where \( L \) is the length of the wire, \( T \) is the tension, and \( \mu \) is the linear density of the wire. The tension \( T \) is affected by the change in temperature, as the wire expands or contracts. The change in tension is proportional to the change in length due to temperature change.
Step 2: Calculating the change in length.
The change in length \( \Delta L \) is given by:
\[
\Delta L = L \alpha \Delta T
\]
where \( \alpha \) is the coefficient of linear expansion and \( \Delta T \) is the temperature change. Substituting values:
\[
\Delta L = 1 \times 1.2 \times 10^{-5} \times (-40) = -4.8 \times 10^{-4} \, \text{m}
\]
Step 3: Finding the fundamental frequency.
Using the values provided and solving for the frequency, we find:
\[
f = 2 \, \text{Hz}
\]
Step 4: Conclusion.
Thus, the fundamental frequency is 2 Hz, corresponding to option (B).