1.

1). This mobile phone2). Is possessing3). A lot of4). New features

Answer»

Correct option- 2

Here, concept of verbs of POSSESSION is brought under CONSIDERATION. Verbs like have, possess, contain, consist, comprise, own, they all take verb's first form with that i.e. simple present TENSE

For e.g. I have two dogs.

Usage of verbs of possession in gerund form is considered to be incorrect.

Thus, replace is POSSESSING with possesses.

Correct SENTENCE:- This mobile phone possesses a lot of new features. 



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