This would be the best option because sentence 2 introduces the tea and the earl. Sentence 1 refers to the earl when it says, "how the earl". Since the specific earl is not named in this sentence, we know that the earl should be named earlier in the passage. Also, sentence number 1 introduces the idea of various legends. Sentence 3 introduces ones of those legends; therefore, sentence 1 would need to be before sentence 3 as well.
Statues can teach us about history, but they do not convey some immutable truth from the past. Instead, they are symbolic of the fixed ideas of a specific community regarding its past, as captured at a particular point in time.