The correct answer is option 2, the Basic needs approach. This approach of human development was initially proposed by the International Labour Organisation (ILO). It places emphasis on meeting the basic needs of individuals, which include health, education, food, water supply, sanitation, and housing.

Option 1, the Welfare approach, focuses on providing social welfare programs and services to improve people`s well-being. While this approach is related to the concept of human development, it does not specifically address the importance of meeting basic needs.

Option 3, the Income approach, is not the correct answer because it focuses on the significance of income levels and economic factors in human development, rather than the specific aspects of meeting basic needs.

Option 4, the Capability approach, is also not the correct answer. This approach, proposed by Amartya Sen and Martha Nussbaum, emphasizes the importance of individuals` freedom and ability to pursue the life they value. While related to human development, it does not specifically address the provision of basic needs.

In conclusion, the Basic needs approach, option 2, is the correct answer as it focuses on meeting the essential requirements for human well-being.