1 is CORRECT. F1 may be expressed as F1 = PRD M(0,3,5) therefore
F1 * F2 = PRD M(0,3,5) * PRD M(3,5,6)
= M0*M3*M5*M3*M5*M6
= M0*M3*M5*M6 (recall: x*x = x)
= PRD M(0,3,5,6)