If we neglect friction/air resistance, then the horizontal component
doesn't change, and the vertical component becomes (9.8 m/s downward)
greater each second thanks to gravity.
So, after 2 seconds, the horizontal component is still 40 m/s, and the
vertical component is (30 - 2·9.8) = 10.4 m/s upward.
Choice #1 says this.