The principle of lateral continuity proposes that sedimentary rock layers continue in all directions until they grade into a different rock type or thin out on the edge of a basin is important because

Principle of lateral continuity is vital or important in the discipline of geology because it allows geologists to find relationship between the sedimentary rock units that are spread over large distances. Principle of lateral continuity defines that the layers of sediment are basically extend laterally in every direction, i.e. they tend to continue laterally. Due to this, the rocks that tend to be similar, but now are either separated by valley or other erosional factors.

the first option is correct

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~courtney