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Please review, I think the correct answer is "Set the AD 100 under RIP Process on R2"

R1 advertises 10.1.1.0/24 to R2 via RIP (AD 120)

R2 redistributes into EIGRP --> R4 learns it (AD 170) [D EX]

R4 advertises to R3 via EIGRP (AD 170) [D EX]

R3 redistributes EIGRP into OSPF --> R2 learns it via OSPF (AD 110) [O E2]

R2 prefers OSPF (110) over RIP (120)

R2 installs wrong route - > Next-hop = R3 instead of R1

Routing Loop, but if we change the AD to 100 under RIP on R2, then R2 prefers RIP route hence no loop, issue solved

You are right. The answer has been corrected along with the explanation. Thank you!