The actual pressure is lower than the setting in the altimeter window. How does the actual altitude compare with the indicated altitude?

1. 1The actual altitude is higher
2. 2The actual altitude is the same
3. 3The actual altitude is lower
4. 4The actual altitude is the pressure altitude

Source: Pilot's Handbook of Aeronautical Knowledge (FAA-H-8083-25C), Chapter 8: Flight Instruments — Altimeter — Setting the Altimeter, page 208