The loading at the source leads to accumulation of sugar and other osmotically active solutes in the sieve tube elements. This causes:
Increase in water potential
Decrease in water potential
First increase then decreases the water potential
First decreases then increases the water potential.
The presence of high concentrations of sugar in the sieve tube elements drastically reduces Ψw, which causes water to move by osmosis from xylem into the phloem cells. Hence, the correct answer is option 2.