💡 Detailed Explanation
The woman is expressing formal gratitude for a gift, using the set phrase '恐縮です' (kyōshuku desu), which implies feeling humbled or almost embarrassed by the kindness. The standard, polite response is to downplay the gift's value. Option 1 does this perfectly by saying 'it's just a small token, please don't worry about it.' Option 2 ('Yes, I chose the best one at the department store') is boastful and socially inappropriate. Option 3 ('I see, well, I'll expect something in return next time') is rude and misses the point of gift-giving.