The correct answer is option 2: Closely related species growing in the same area or niche. When closely related species occupy the same area or niche, they often have similar ecological requirements and compete for the same limited resources such as food, light, and space. This competition can be intense as they are vying for the same resources to survive and reproduce. They may employ strategies such as competing for territorial control, aggressive interactions, or resource partitioning to reduce competition and coexist. On the other hand, distant species may have different ecological requirements and occupy different habitats, reducing the intensity of competition for resources. It is important to note that competition can occur between species that are both closely or distantly related, but it is most severe when closely related species occupy the same area or niche.