Answer:
The correct answer is the option 2: Gary is not a holder or holder in due course becuase the check was never indorsed.
Explanation:
To begin with, the field of law and more in particular the commercial law and all its scenarios, any check that has been passing through hands must be indorsed in order to be able to be payable to the person who has it the last, in any other case if the check is not indorsed then that means by law that the check has never changed its owner and therefore that it can not be payable for anybody else. That is why, Gary is not a holder because his uncle did not indorsed him the check correctly.