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In this problem, we are asked to represent three different groups of individuals: all males (A), bearded males (B), and male guitarists (C).
Option 1 illustrates this scenario correctly. Here, the bearded males (B) are a subset of all males (A) because every bearded male is a male, but not all males are bearded. In addition, Male guitarists (C) are also a subset of all males (A), as every male guitarist is a male, but not all males are guitarists. The intersection between B and C reflects the fact that most guitarists are also bearded males, hence they are a subset of both B and C.
Options 2, 3, and 4 do not correctly represent this relationship because they do not correctly show the subsets and intersection between B and C within the larger set A. Hence, the correct answer is Option 1.