A client has been diagnosed with a tumor classified as T2 N1 M0 according to the TNM staging system. Which statement best describes this classification?

The tumor is small, there is no lymph node involvement, and metastasis to distant sites has occurred.

The tumor is large, there is regional lymph node involvement, and no distant metastasis has occurred.

The tumor is localized with no regional lymph node involvement or distant metastasis.

The tumor is in situ, with no lymph node involvement and the presence of distant metastasis.