The correct answer is 2. It allowed the federal judiciary to declare laws unconstitutional.
The Marbury vs. Madison case greatly increased the power of the federal judiciary (aka Supreme Court). In this case, the Supreme Court gave itself the power of judicial review. This concept allows the Supreme Court to interpret whether laws are constitutional or unconstitutional. This power given to the Supreme Court helps in the system of checks and balances we have in the federal government, as it allows the court to check the law making ability of the President and Congress.
