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EXPLANATION: Option (2) simply changes the word order but not the sentence structure. It remains in active voice. Option (3) uses the present tense with a passive voice structure, but since the event happened in the past, it's inaccurate. Option (4) uses the present perfect tense with a passive voice structure, but it implies the watch might still be lost, which might not be the intended meaning. Option (1) accurately changes the sentence to passive voice with the correct past tense, placing the object ("my watch") as the subject and adding the auxiliary verb "was" with the past participle of the verb ("lost").
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