Which functional group gets reduced first?
I believe you understand $\ce{LiAlH4}$ is stronger base than $\ce{NaBH4}$. In the reduction of 2 to 1, $\ce{NaBH4}$ failed to reduce ester function at all, but reduce 3-keto function to 3-hydroxy function. That result tells us that isolated carbonyl group is easy to reduce than that in ester (not even to relevant aldehyde). Thus, you can conclude that isolated carbonyl function reduced first before hard to reduce ester function in the presence of stronger reducing agent such as $\ce{LiAlH4}$, which can able to reduce both.