Cut from the same cloth means very similar in character, nature, or behavior. The correct answer is this meaning because the expression is used figuratively, not only by its literal words.

Examples:

• The two leaders were cut from the same cloth.
• In an HSC essay, Cut from the same cloth can express this meaning: very similar in character, nature, or behavior.
• When this expression appears in a passage, connect Cut from the same cloth with the idea of very similar in character, nature, or behavior.