The principle of conservation of mass, applied to fluid dynamics (often via the continuity equation), states that mass cannot be created or destroyed.
For a steady flow through a control volume or system, this implies that the rate at which mass enters the system must equal the rate at which mass leaves the system.
In simpler terms, what goes in must come out (mass-wise) if there's no accumulation within the system.
Option (2) accurately reflects this principle for steady flow.
Option (1) describes pressure-driven flow.
Options (3) and (4) relate to relativistic physics, not standard fluid mechanics mass conservation.