Option 1 states that steel has a higher thermal conductivity than wood and water. However, in reality, steel does have a higher thermal conductivity than wood, but it has a lower thermal conductivity than water. Therefore, option 1 is incorrect.

Option 2 correctly states that steel has a higher thermal conductivity than both water and wood. This is accurate since steel is a good conductor of heat. Therefore, option 2 is correct.

Option 3 states that water has a higher thermal conductivity than steel and wood. While water is a better conductor of heat than wood, steel actually has a higher thermal conductivity than water. Thus, option 3 is incorrect.

Option 4 states that water has a higher thermal conductivity than both wood and steel, which is incorrect. Steel has a higher thermal conductivity than water. Therefore, option 4 is false.

To summarize, option 2 is the correct statement because it accurately states that steel has a higher thermal conductivity than both water and wood.