Hi @tenzin tsering,
The message is informing you under which circumstances your husband can receive a residence permit as a family member in Germany. The difference between the two options given is whether you both earn enough to cover your living expenses.
Option 1 requires you to earn enough money. The person writes that based on the documents provided, you do not have enough income to cover your costs. It is not enough to both be working, you need to as a family earn enough money (netto, i.e. after tax and other deductions) to cover your living expenses (401€ x 2) and your rent. The person did not mention it, but you actually need a bit more than this due to the way they calculate it. Let me know if you need to know more about this.
The other option does not require you to earn enough. It would be given for humanitarian reasons to protect the family unit. In my experience, it is somewhat unusual to be offered this but it seems the authorities in Berlin have a different approach. If you decide for option two, you simply need to let the person know and they will send your husband an appointment to come and discuss it.