It's true that you "measure up" to some standard, but from the context of concerned parents and children passing exams, it's clear that the standard is academic performance. So answer 1) is right. Answer 2) is correct as well.
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Silvia BlackNowadays parents have to see to it that their offsprings measure up and pass examsNote that the plural form of offspring is the same as the singular. It does not add an -s.