I'm guessing it's #2, "home". Do I win the prize? *\;-)

No prize to be given as the answer was provided along with the puzzle. It's a old school puzzle describing a geographic anomaly; the only place it could be true is at the Earth's Pole, and the only color of a bear you might see would be white.
I think it was featured in a movie a few years ago, "Young Sherlock Holmes".