Concept: This question tests the correct use of phrasal verbs. A phrasal verb is a combination of a verb and a preposition or adverb (or both) that creates a meaning different from the original verb.
Step 1: Understand the context
The sentence describes the action of a Principal distributing prizes. We need a phrasal verb with "give" that means to distribute or hand out.
Step 2: Meaning of "give away"
The phrasal verb give away means:
% Option
(A) To give something to someone for free.
% Option
(B) To distribute something (like prizes or awards).
% Option
(C) To reveal a secret or information.
In the context of prizes, "give away" means to distribute them to the winners.
Step 3: Evaluating the options
(1) giving into: "Give into" means to yield or surrender to something (e.g., "He gave into temptation."). This doesn't fit the context of distributing prizes.
(2) giving away: "The Principal is giving away the prizes." This correctly means the Principal is distributing the prizes.
(3) giving for: "Give for" is not a standard phrasal verb with a meaning suitable here. One might "give something for a reason," but "giving for the prizes" is awkward.
(4) giving at: "Give at" is not a standard phrasal verb. One might "give something at a location," but it doesn't fit the action of distribution here.
The most appropriate phrasal verb is "giving away."