The answer is #1 because está is conjugated in the él/ella/usted form and it should be in yo form.
A mercadillo is a street market so you can buy all kinds of things there. So I would say:
At a mercadillo you can buy clothing, Spanish street foods, and meal ingredients such as spices, fruits, and vegetables. A mercadillo refers to a traditional market that is usually held on the weekends that’s in a commonly spotted area with Spanish/ Hispanic/Latin culture.
Hope this helps!
tienen algunas palabras que se echuchan y se escriben lo mismo
A mi mama' le gusta patinar.
Mi hermano es muy generoso.
A mí me encanta la historia de Europa.
Saludos :)
