The magnet in fig. rotates as shown on a pivot through its center. At the instant shown, what are directions of the induced currents

$N$ pole moves closer to coil $CD$ and $S$ pole moves closer to coil $AB$ on rotation of magnet.

According to Lenz's law, $N$ pole should develop at the end corresponding to $C$.

$\therefore$ Induced current flows from $C$ to $D$ 

Also $S$ pole should develop at the end corresponding to $B$

$\therefore$ Induced current flows from $A$ to $B$.

Therefore the answer is (1)