The correct answer is option 1: A-1, B-3, C-2, D-4.

Let`s match each person with their respective position:

A. A. M. Damodaran is matched with position 1 - Chairman, Securities and Exchange Board of India (SEBI). This means that A. A. M. Damodaran is the Chairman of SEBI.

B. M.K. Narayanan is matched with position 3 - National Security Advisor. This means that M.K. Narayanan is the National Security Advisor.

C. R. Chidambaram is matched with position 2 - Head, Nuclear Command Authority. This means that R. Chidambaram is the Head of the Nuclear Command Authority.

D. S.R. Hashim is matched with position 4 - Chairman, Union Public Service Commission. This means that S.R. Hashim is the Chairman of the Union Public Service Commission.

Therefore, option 1 is the correct answer as it correctly matches each person with their respective position.