Picture Riddle: Are the figures perfect or distorted?

Both 1 & 2 are perfect.

It’s actually an optical illusion.

These illusions take advantage of the way our brains process information containing repeating patterns. One regular pattern can dominate so strongly that other patterns appear distorted.
A classic example is the pattern of concentric circles with a superimposed square. Though the sides of the square are absolutely straight, they appear curved. The straightness of the square’s sides may be checked by laying a ruler along them.

You can also superimpose a circle on a pattern of squares.