<u>Answer:</u> The correct answer is Option 3.
<u>Explanation:</u>
Addition reaction is defined as the reaction in which more atoms are added to the given compound. No atom is lost during this reaction.

Substitution reaction is defined as the reaction in which one atom replaces the other atom from the compound.

Saturated hydrocarbons are defined as the hydrocarbons in which a single bond is present between carbon and carbon atoms. The general formula for these hydrocarbons is 
Unsaturated hydrocarbons are defined as the hydrocarbons which have double or triple covalent C-C bonds. They are known as alkenes and alkynes respectively. The general formula for these hydrocarbons is
and 
For the given chemical equation:

The given hydrocarbon is saturated hydrocarbon with n = 2 and here, hydrogen atom is getting replaced by chlorine atom. Thus, it is considered as a substitution reaction of a saturated hydrocarbon.
Hence, the correct answer is Option 3.