What can be the consequence of wrongly setting the headlamp levelling control?

You answered correctly. If you set the headlamp levelling control incorrectly, your dipped headlights can either point too high or too low. If they’re too high, you risk dazzling oncoming drivers, which is dangerous and not allowed. If they’re too low, you limit your own range of vision and might not see obstacles in time, especially at night. Adjusting the levelling control correctly helps ensure safe visibility for you and prevents glare for others. The life-cycle of the light bulb, however, is not affected by the levelling position. This is why only the first two answers are correct.