The correct answer is Option 2: International Monetary Fund (IMF).

The Global Financial Stability Report (GFSR) is a biannual report that provides an assessment of the global financial system and markets. It focuses on current and potential risks to financial stability and offers policy recommendations to mitigate these risks. The report is prepared by the IMF staff, with input from IMF member countries, and is released in the spring and fall each year.

The IMF is an international organization that was established in 1944 to promote international monetary cooperation, facilitate international trade, and promote economic growth and stability. It has 190 member countries and is headquartered in Washington D.C.

The IMF is responsible for overseeing the international monetary system and providing financial assistance to member countries in times of crisis. It also conducts research on economic and financial issues and provides policy advice to member countries.

The GFSR is an important tool for policymakers, financial market participants, and the general public to understand the state of the global financial system and to identify potential risks to financial stability. The report covers a range of topics, including the health of the banking sector, the functioning of capital markets, and the impact of macroeconomic factors on financial stability.

In conclusion, the Global Financial Stability Report is prepared by the International Monetary Fund, which is an international organization responsible for overseeing the international monetary system and providing financial assistance to member countries in times of crisis. The report is an important tool for policymakers and market participants to understand the state of the global financial system and to identify potential risks to financial stability.