Neither is correct.  Could you tell me where the bus stop is? is correct.  The direct question is Where is the bus stop? However, to ask politely, you’d say Could you / Would you. You could also ask politely by using an indirect question: I wonder if you could tell me where the bus stop is. Notice that there is no question mark. 

I was looking for the answer you mentioned Could you tell me where the bus stop is? but it wasn't among the options! So I went with the second option! 😅

I sometimes hear option 1, with a pause. Like Could you tell me... Where is the bus stop? It's really two different thoughts, and it's not used in writing. Written like that, they are both wrong.

Ahh, thanks for sharing your insights on this question, @schmamie!