Yes, it is part #2. If you are at the dealer make sure you also get the large rubber grommet that fills the hole where the trailer wiring came through. There is also a plastic filler piece that clips into the bumper and covers the hole where the hitch ball was, depending on which bumper you have (unless you already have these items)

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2007 X3 3.0si, 6 MT, Premium, White

Retired:
2008 535i, 6 MT, M Sport, Premium, Space Grey
2003 X5 3.0 Steptronic, Premium, Titanium Silver
2002 325xi 5 MT, Steel Grey
2004 Z4 3.0 Premium, Sport, SMG, Maldives Blue