Since ipmed's explanation didn't immediately make sense to me... I thought I would throw in my 2 cent explanation here:
Diamagnetic basically refers to a species that has all of its electrons spin-paired. Paramagnetic would mean that at least one electron isn't spin-paired.
The questions asks, "Reduction of any of the ions in Table 1...." The key word is ions. Sodium ion is missing an electron. Sodium ion then has the same electronic configuration as Neon, that is, all of its electrons are spin paired and it is thus diamagnetic. If Sodium ion is reduced, it gains an electron and becomes paramagnetic.
Basically, Sodium metal is paramagnetic as it appears on the periodic table, but the question tells you that you are dealing with the ion and therefore it has lost that electron, so if you reduce it, you basically give it the electron back.
The same concept can be applied to Lithium, or any of the other Alkali metals for that matter.