I'm a bit confused; you say that the definition is not a complete sentence, yet you ask if you should put a period at the end of the sentence, so what sentence are you talking about? Perhaps you could post the exact text.
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loivuI think '2' is correct.(2) would be OK (assuming a "put full stops inside the quotation marks" punctuation style) if the definition is quoted at the end of a full sentence in punctuated text. For example: