The correct answer is: Neither 1 nor 2.
The population density of a place is the number of people living in a given area. It is calculated by dividing the population of the place by the area of the place.
The population density of Kullu district is 80 sq km/person. This means that there are 80 people living in every square kilometer of Kullu district.
The population density of Chamba district is also 80 sq km/person. This means that there are 80 people living in every square kilometer of Chamba district.
However, this does not mean that Kullu district and Chamba district have the same number of people. The population of Kullu district is 1,183,100, while the population of Chamba district is 520,400. This means that Kullu district has more people than Chamba district, even though they have the same population density.
The population density of a place is not a good indicator of the number of people living in that place. It is more useful for comparing the population densities of different places.