The correct option is:
Option #1: Use the equation x^2−a^2, where a is the middle number (midpoint) and x is the distance from the midpoint to either endpoint.
This option accurately describes how to apply the difference of squares identity when multiplying two numbers that are equidistant from a midpoint. The numbers can be expressed as (a-x) and (a+x), and applying the difference of squares gives you (a-x)(a+x) = a^2 - x^2.