Final answer:
To match the frame size of your project with your source files, adjust the project settings to align with the source files' resolution and frame size. Use no compression for the highest quality or choose camera settings for the intended output like screen display or printing.
Step-by-step explanation:
To match the frame size for your project to the frame size of your source files, the correct action is to change the project settings to match your source files. It is essential to locate the resolution and compression menu options for your digital camera before starting your project. If the goal is to achieve the highest quality for your photos, especially if you plan on printing them, it is recommended to use no compression when shooting photos (option 2). Afterward, if there is a need to decrease file size, you can compress the photos using an image editing program like Photoshop or Pixlr Editor. However, if you are unable to edit the photos or prefer not to, setting your camera to the desired outcome, such as for screen display, is the best course of action (option 1).
By ensuring your project's settings match the resolution and frame size of your source files, you prevent any unnecessary scaling or quality loss that could occur from resizing the source files or changing the quality settings from the project panel menu.