The correct answer is option 1. In context of this question, Carrots are a type of Vegetable, and both Carrots and Vegetables fall under the broader category of Food. This is illustrated in the Venn diagram of option 1 where the circle representing Carrots is wholly within the circle representing Vegetables, and both these circles are within the larger circle representing Food. This means every Carrot is a Vegetable and every Vegetable is a Food.

In contrast, options 2, 3, and 4 all incorrectly depict the relationship between Carrots, Vegetables, and Food. In options 2 and 3, they somehow suggest that there are some Carrots that are not Vegetables or some Vegetables that are not Food, which is incorrect.

Option 4 suggests that these three classes are somewhat overlapping with each other but are distinct classes, which is also incorrect, because every Carrot is a Vegetable and every Vegetable is a Food. Hence, their relationship isn`t accurately represented in this diagram.