Option 1 -> Practical means dealing with things realistically and sensibly, which is exactly what pragmatic means.
Option 2 -> Gullible means easily deceived or naive, which has no connection to pragmatic.
Option 3 -> Serious means solemn or thoughtful, but doesn't capture the practical, results-oriented essence of pragmatic.
Option 4 -> Extravagant means excessive or wasteful, which is actually opposite to a pragmatic approach.
Hence, Option 1: practical -> "Pragmatic" refers to an approach focused on practical outcomes and real-world effectiveness rather than theory or idealism. In this context, the boss chose a realistic, results-oriented method after existing approaches failed -> correct