Answer:
2. Students are engaging in a peer discussion in diverse groups.
Explanation:
In the context, the teacher of a third grade is discussing a language art lesson and reads a story to the students and they place these students in a small heterogeneous group to talk and discuss about the characters mentioned in the story.
In this way, the teacher is engaging them effectively in the range of a collaborative discussions with diverse members in the group of grade three.
Thus the correct option is (2).