To get the graph of g(x) = f(x-1) -2, you'd shift the graph of f right 1 unit and down 2 units.
The "x-1" in f(x-1) is a horizontal shift (left/right) and those are the opposite of what you'd think. Subtraction moves right, addition moves left.
The "-2" at the end is a vertical shift and that is what you'd expect with subtraction moving you down.
Go with the second answer:
The graph of f is shifted to the right 1 unit and down 2 units to create the graph of g.
