Step 1: Concept
When a question is embedded within another sentence (an indirect question), the word order follows that of a statement: Subject + Verb.
Step 2: Analysis
In the sentence "Can you tell me...", the main question has already used inversion ("Can you..."). The subordinate clause "where the conference room is" should use standard declarative word order.
Step 3: Comparison
- Option (1) incorrectly uses question word order ("where is the...") for the embedded part.
- Option (2) correctly uses statement word order for the embedded clause.
Step 4: Conclusion
Option (2) is grammatically correct.
Final Answer: (2)