Lac is produced from an insect. The insect involved in the production of lac is called the lac insect or the lac bug. These insects belong to the superfamily Coccoidea and are native to tropical areas. The female lac insect secretes a resinous substance known as lac as a protective covering for her eggs. This resinous substance is then collected and processed to obtain lac. Lac has various uses, including as a dye, varnish, and in the production of shellac. It is commonly used in industries such as textiles, pharmaceuticals, and cosmetics. Therefore, option 2 is the correct answer.