Ted Hughes' Wodwo is indeed correctly described by option 1, which says it is “a volume named from the wild men of the woods of Sir Gawain and the Green Knight.” Here's why:
Wodwo in Sir Gawain and the Green Knight: In medieval literature, particularly in Sir Gawain and the Green Knight, the term "wodwo" refers to a wild man or spirit of the woods. This character is associated with a mysterious, forest-dwelling figure, which aligns with the nature of a "wodwo" as a wild, untamed being.
Ted Hughes’ Choice: Ted Hughes’ collection Wodwo (1967) is named after this wild, enigmatic figure from medieval literature. Hughes often drew on mythological and literary sources for inspiration, and naming his volume after the "wodwo" reflects his interest in themes of nature, the primitive, and the untamed.