How is your business lately?

1. Not so good, I'm afraid.
2. Not so good, I'm sorry.
-----------------
Which one is right answer?

#1 is correct

Edna is right.

Both 1 and 2 are correct responses, but they convey slightly different tones.

1. "Not so good, I'm afraid." implies that the business has been performing poorly recently, and there is some concern or worry associated with the situation.

2. "Not so good, I'm sorry." conveys a similar meaning, but with a slightly more sympathetic tone. It implies that the business has not been doing well, and the speaker is expressing their regret or empathy.

Ultimately, the choice between these two responses depends on the desired tone and level of sincerity that you want to convey.