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Bishop Carlos Felipe Ximenes Belo and Jose Ramos-Horta shared the 1996 Nobel Peace Prize for their work advocating for the independence and peaceful resolution of conflicts in East Timor, a Southeast Asian nation. Therefore, option 1 is correct.
Option 2, Guatemala, option 3, Bosnia, and option 4, Barunda (which appears to be a non-existent country), are incorrect. There is no known connection between the 1996 Nobel Peace Prize laureates and these other places. Also, neither Belize nor Ramos-Horta are associated with missions or peace advocacy in Guatemala, Bosnia or a location known as `Barunda`. These other places were possibly included as distractions in the question to test understanding and knowledge about the Peace laureates` actual place of concern which is East Timor.