Diabetes mellitus is a disease that affects how your body uses blood sugar. Hence, it is associated with higher sugar level in blood and lower insulin level in blood. Let`s dissect each option:

Option 1 suggests lower blood sugar levels and higher insulin levels in the blood, which does not define Diabetes mellitus.

Option 2 suggests higher and lower blood sugar levels. This is inconsistent as blood sugar level can`t be both high and low at the same time in Diabetes mellitus.

Option 3 suggests lower blood sugar and insulin levels, which does not define Diabetes mellitus. Generally, in diabetes, insulin level might be low, but sugar level is not low but high.

Option 4 suggests higher blood sugar levels and lower insulin levels. This is correct because in Diabetes mellitus the body either doesn`t make enough insulin (Type 1 Diabetes) or can`t use insulin effectively (Type 2 Diabetes), leading to an accumulation of glucose in the blood.