Male-biased size dimorphism means males have evolved to be bigger than females. Any hypothesis that explains this pattern needs to give males, specifically, a reason to grow larger, usually through some kind of advantage that only applies to male-male competition or mate acquisition.
Only the second hypothesis, males gaining a competitive edge from being larger while females gain none, actually predicts males evolving to be bigger than females, matching the male-biased dimorphism described.
Let's summarize:
So the correct hypothesis is that body size provides a competitive advantage to males but not to females.