On an electronic GPS chartplotter, what does the term 'Cross-Track Error' (XTE) indicate to the helmsman?

1. The perpendicular distance the vessel has drifted to the left or right of the intended route line between active waypoints
2. The error in the vessel's magnetic compass deviation table
3. The time remaining until the next waypoint is reached at current speed
4. The difference between the vessel's draft and the water depth