A positively charged glass rod is found to attract a piece of paper. If the paper is electrically neutral, how is this attraction possible?

The positively charged rod creates an excess of negative charge in the paper when brought near it, so that the originally neutral paper becomes negatively charged.
The positively charged rod causes molecules in the paper to polarize, such that on average, negative charges in the paper are closer to the rod than positive charges.
It is not possible—the charged rod will not attract the paper.
The positively charged rod destroys an amount of positive charge in the paper when brought near it, so that the originally neutral paper becomes negatively charged.

The second option is the correct explanation. The positively charged rod causes the molecules in the paper to polarize, creating an attraction between the positive charge on the rod and the induced negative charge in the paper. This results in the paper being attracted to the rod even though it was originally electrically neutral.