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Explanation:

Options 3 and 4 can be easily ruled out. They are discussed much after the talk on secularization of the liberal arts.
The choice between options 1 and 2 may be a wee bit difficult. Firstly, as the author mentions in the fourth paragraph, “Student life obviously became more secular when it moved out from the monasteries into the bustling towns.” The environment changed. The second reason is cited as, “More important than environment was the fact that most students, even though they entered the clergy, had secular goals.” And thirdly, the next paragraph puts this as a reason –“This being so, the curriculum of the liberal arts became more sophisticated and more divorced from religion.” Yes, the students used it as a base to study law and medicine and even ecclesiastical studies. But this happened because the influence of religion became less. The reason is given in option 1.

Hence, the correct answer is option 1.