Concept:
For a safe dam, the foundation should be strong, watertight and stable. The dip direction of rock strata strongly affects the stability and seepage behaviour of the dam.
Step 1:
Strong igneous rock and low-permeable foundation strata are favourable, since they give strength and reduce seepage. Strata dipping upstream are preferred because the beds resist sliding and reduce leakage in the downstream direction.
Step 2:
Strata dipping downstream are not preferred, because the bedding planes incline toward the downstream side, encouraging the dam to slide along these planes and allowing water to seep along the strata, both reducing stability.
Answer: Option (1) — Strata dipping downstream.