A sentence with a grammatical error is given. Identify the error and then from the given options, select the sentence which is error-free and grammatically correct. The state of affairs in this reputed institution are causing anxiety.4239

1. The state of affairs in this reputed institution is causing anxiety.
2. The state of affairs in this reputed institution are caused anxiety.
3. The state of affairs in this reputed institution causing anxiety.
4. The state of affairs in this reputed institution were causing anxiety.