His concern for the tsunami victims _________ his reputation as a callous person.

Callous means unfeeling, uncaring, but if this person has concern for the tsunami victims, his reputation must be an unfounded one. Therefore, the blank must characterize contradicted or proved false. This is one of the meanings of 'belied', hence it forms the answer. 'Rescinded' in (2) is the second best answer. It means revoked or withdrawn, but we never say a reputation is rescinded. Hence, (2) is the answer.