What does this Bash program print?

What does this Bash program print?

show_count() {
  printf 'count=%d first=<%s>\n' "$#" "$1"
}

label='Q1 report'
show_count "$label"
show_count $label

1. count=1 first=<Q1 report>\ncount=2 first=<Q1>
2. count=1 first=<Q1 report>\ncount=1 first=<Q1 report>
3. count=2 first=<Q1>\ncount=2 first=<Q1>
4. It raises a syntax error.