Please accept my apologies for the delay, I have been sick for 5 days and I can't see well, the screen in blurry , so expect a lot of typographical errors Think of this question in terms of vector calculusYou have a lot of useful information both is the wordings and the graph.There does not exist current in the 2nd position that the square magnetic metal passes due to several reasons:Let me give you a simple trick using the RHR:what does it mean the direction of the ammeter at position 1 is clockwise and at position three anticlockwise?This tells you that your forces are canceling out at position 2.
This is clear from the maxwell's equations shown in the figure
What the equations are saying is that if you move from position 1 to 3 the rate of change of B is increasing. Maxwell's surface integral is telling you that there is an increase in the the rate of change of A. That implies your electric field is increasing or you may think of it in terms of emf at basic levels in which you can easily derive from the closed loop integral. So the potential will be high at the third position, it is like kicking the ball and the ball accelerates.
But at position 2 the flux is constant so no rate of change, hence it would be a region for potential forces cancelling each other out.
To be continued feel a bit tired can't concentrate...