Answer:
Correct answer is many innocent people lost their jobs.
Explanation:
Second option is correct as due to this policy many people were prosecuted, mostly without real reason, according to certain allegation. Therefore, a lot of them lost their jobs.
First option is not correct as not so many people were found guilty for espionage.
Last two options are totally wrong. McCarthy as very unpopular politician, while war with Soviets never happened.