Transformers are used in between the electric power stations and homes or factories to minimize the power loss in transmission cables.

Option 1: This is the correct answer. Transformers work by stepping up or stepping down the voltage of the electricity to a suitable level for transmission. By increasing the voltage, the current can be reduced, which helps to minimize power loss in the transmission cables.

Option 2: While transformers can help minimize voltage drop, their primary purpose is to adjust the voltage levels, not specifically focus on minimizing voltage drop.

Option 3: Transformers can help minimize current drop indirectly by adjusting the voltage, but their main role is not specifically to minimize current drop.

Option 4: Providing a constant voltage at the user end is one of the functions of transformers, but it is not the main reason why transformers are used between power stations and homes or factories.