In graphite, each carbon atom is hybridized in a trigonal planar arrangement with sp2 hybridization. This means that option 1, which states that the hybridization of each carbon atom is sp, is NOT true for graphite.

Option 2 correctly states that the hybridization of each carbon atom in graphite is sp2. This hybridization allows each carbon atom to form three sigma bonds, resulting in a hexagonal lattice structure.

Option 3 is true for graphite. The delocalization of electrons over the whole sheet of atoms gives graphite its characteristic electrical conductivity and lubricating properties.

Option 4 is also true for graphite. The layers in graphite are composed of hexagonal rings of carbon atoms that are arranged in a honeycomb lattice structure.

Therefore, the correct answer is option 1 - hybridization of each carbon atom is not sp in graphite.