Point D, as shown i the figure, is the intersection of the angle bisectors. This point is the Incircle, or the center of the inscribed circle.
All 3 angle bisectors meet at D, so drawing the angle bisector of C is useless. (Thus step 4 is not the one).
Since we have the center of the inscribed circle, we want to open the compass so that it touches all 3 sides at one point only, that is, we want the 3 sides to be tangent to this circle.
The segments joining the tangency points and D are 3 radii of the circle. We know that a radius is perpendicular to the tangent it touches.
Thus, we need to draw an altitude from D to any of the sides.
Answer: 1