To solve this problem, we need to understand the nature of viroids.$\newline$Viroids are infectious agents that are smaller than viruses. They are composed solely of a short strand of$\newline$circular, single-stranded RNA without any protein coat. This distinguishes them from viruses, which have$\newline$both nucleic acid (either RNA or DNA) and a protein coat.$\newline$Let's analyze the options:$\newline$• Option 1: They have free RNA without protein coat. This is correct as viroids consist only of RNA.$\newline$• Option 2: They have DNA with protein coat. This is incorrect because viroids do not contain DNA or a protein coat.$\newline$• Option 3: They have free DNA without protein coat. This is incorrect as viroids contain RNA, not DNA.$\newline$• Option 4: They have RNA with protein coat. This is incorrect because viroids lack a protein coat.$\newline$Therefore, the correct option is Option 1.