Questions about example sentences with, and the definition and usage of "Jakes"

A: If someone's name end with an s, you can either add 's after it or only '.

For example:

Charles has a house
Charles' house is yellow
Charles's house is yellow

I think this link explains it thoroughly: http://www.bbc.co.uk/worldservice/learningenglish/youmeus/learnit/learnitv20.shtml

In your test, specifically, Jakes isn't a common name (I've never met any, at least), so I assume the correct answer would be 2.