What physical reality does n=2 represent, and what does it mean when compared against n=3?
This image shows the states corresponding to n=1, 2, 3 and 4 for butadiene. As you can see, each state can be occupied by 2 electrons and there's 1 pi electron per carbon (so 4 in total).
Filling up from the bottom, since fewer nodes means lower energy (generally), you have the n=1 and n=2 states filled and the others unfilled. This means that the overall picture looks a bit like there's a big partial pi-bond across the whole molecule and then a set of two partial pi-bonds between the outer pairs of atoms (i.e. 1 with 2 and 3 with 4).