Answer: Second option is correct.
Step-by-step explanation:
Since we have given that
Oliver owns a paper mill. It has machines that use wood pulp to make paper.
Since they use wood pulp that means it is an "Intermediate goods " to make paper that means it is a "Final good".
Intermediate goods means that goods which are used as raw material for resale or for reinvestment.
So, Second option is correct.