I understand, I think, a good portion of it. The first part "Yond despised and ruinous man my lord" To me that says he has become pretty much what it says, a ruined man because of what has happened to him and he's also despised. "Full of decay and failing" to me that means everything in his life has been destroyed and he's failed to correct it.
"O monument and wonder of good deeds evily bestowed! What an alteration of honour has desp'rate want made!" This part I don't really understand. I think it means that the good deeds he has done for others (in the context of the entire poem) were only given because he was eager to please perhaps.
To me, I've ruled out Answers 1, he hasn't been seen to be passive and isn't now violent. Answer 2 Can also be ruled out I think because he isn't abusing language, not that I can tell. Answers 3 and 4 are sticking out to me. I'm thinking 4 because he was eager to please others but is now melancholy because of the ordeals he's gone through, answer 3 also, however, seems to fit because he was wealthy but now is destitute, no shelter, clothing, food. So those two answers to me seem like they'd fit but I'm really not sure.