The Comptroller and Auditor General (CAG) of India is the head of the supreme audit institution in the country. The CAG is responsible for auditing the accounts of the central and state governments, as well as public sector organizations.

According to the Indian Constitution, the CAG is appointed by the President of India. The President exercises the power of appointment on the advice of the Union Council of Ministers. This means that the Prime Minister, who is the head of the Council of Ministers, has an indirect role in the appointment of the CAG.

It is important to note that the Finance Minister and the Lok Sabha (the lower house of the Parliament of India) do not have the power to directly appoint the CAG.

In this case, the correct answer is option 2, the President of India.