It would seem that absolute qualities in art ________ us, that we cannot escape viewing works of art in ________ of time and circumstance.

The absolute qualities in art cannot frighten us, obfuscate (confuse) us or abash (embarrass) us, but can only edify (meaning instruct; educate) or elude (meaning evade; escape) us. So, (2) and (3) can be ruled out from the point of view of the suitability of the first missing word alone, leaving only (1) and (4) for examination. The phrase ‘in an exemplar of time and circumstance’ does not make the same eminent sense as ‘in a context of time and circumstance’. So, (4) is a much better choice than (1) and hence, the answer.