Solution 1: you didn't mention about the type of the parser, so I am assuming you're talking about LR(0) parser.
It should S/R conflict. because parser can't decide whether to shift 'e' or reduce 'iEtS' to S.
Solution 2:
X = TOS Symbol
a = Look Ahead Symbol
1) X=a=$ is acceptence condition.
2) X is a terminal and it will be removed from the stack, and 'a' will point to the next input symbol
3) This is when TOS is a variable, Variable will be replaced with its RHS part.
Hence, 2) seems correct answer!