In a hypotonic solution, the first option is correct:
"The cell has more solute than its environment, so solvent moves from outside the cell to inside the cell, causing the cell to swell."
In a hypotonic solution, the concentration of solute outside the cell is lower than the concentration inside the cell. As a result, water moves into the cell to balance the solute concentrations, which can lead to the cell swelling and potentially bursting if too much water enters.