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I was going through this exercise of automata on IIT Bombay's site, where they have asked this question as an exercise. I have answered $none$ but the ans given is $option$ $1$.

My doubt is $φ^*$ is $ϵ$ but in option 1 we are having a $SET$ $CONTAINING$ $ϵ$.

So how can these two be $equal?$

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