Concept:
Cumulative (systematic) errors are errors that occur in the same direction every time and tend to add up. They arise from definite causes such as temperature, tension and faulty instruments.
Step 1:
Expansion of the steel tape (temperature), the effect of tension on the tape, and a badly adjusted instrument all produce errors of a fixed sign that accumulate, so they are cumulative errors.
Step 2:
Displacement of arrows or station marks is an accidental or random mistake; it does not follow a fixed pattern and so is not a cause of systematic error.
Answer: Option (1) — Displacement of arrows or station marks.