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Which of the following always happens during the $\text{SSL/TLS}$ handshake?

  1. The server and client already use a fixed set of cryptographic algorithms that are pre-decided by the system administrators
  2. The client sends “client hello” with a set of encryption and hashing algorithms available to it and server responds with its choice of the encryption and hashing algorithms from those sent by the server
  3. The server sends “Server hello” with a set of encryption and hashing algorithms available to it, and  the client makes the choice of algorithms and sends back “client hello” message with the choice
  4. The key distribution and fixing of algorithms are done offline so there is no need for any exchange of algorithm or key during the handshake
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