Here are the reduction steps for each:
(λn.(λs.(s (λx.λy.y))n) λx.x)(λx.λy.y)
(λs.(s (λx.λy.y)) λx.x)(λx.λy.y)
(λx.x (λx.λy.y))(λx.λy.y)
(λx.λy.y)(λx.λy.y)
λy.y
(λn.(λs.(s (λxy.y))n) λx.x)(λxy.y)
(λs.(s (λxy.y)) λx.x)(λxy.y)
(λx.x (λxy.y))(λxy.y)
λxy.y (λxy.y)
λy.y
Side note: 1 and 2 are equivalent since (λx.λy.y) = (λxy.y)