Answer: The answer to this question is an option (2): it reduces friction.
A streamlined body is considered a structure which reduces the friction between an object and fluid for smooth motion within the fluid. While a body is travelling in a specific medium, a dragging force opposes the body’s motion. The potential of dragging force depends upon elements and molecules present within the medium, providing an opposing force in the body’s movement. Hence, when the body is streamlined, it reduces the friction caused by the opposing elements and provides a smooth and unopposed motion to the body.