Option 1 states that the President cannot be regulated by law in the exercise of the power vested in them as the Supreme Commander of the Defence Forces. However, this is incorrect. In a democratic country like India, the power of the President is not absolute and is regulated by the Constitution and laws enacted by the Parliament.

Option 2 correctly states that the President shall be regulated by law in the exercise of this power. This means that the President cannot act arbitrarily or without any limitations. They have to follow the provisions of the Constitution and other relevant laws while exercising their authority as the Supreme Commander of the Defence Forces.

Option 3, stating that during war the President seeks advice only from the Chiefs of the Defence Forces, is not directly related to the question. The question is specifically about the regulation of the President`s power and not about their consultation during war.

Option 4 states that during war, the President can suspend the fundamental rights of citizens. However, this is incorrect. The fundamental rights of citizens, granted by the Constitution, cannot be suspended even during wartime. There may be some reasonable restrictions imposed for the greater good of the nation, but the fundamental rights remain intact.

Based on the explanations provided, option 2 is correct. The President`s exercise of power as the