Hi Niwantha, When we start an interrogative sentence with question words such as "How", "What", "Who" and so on, the auxiliary verb (e.g. is, has) comes before the subject. Example: How can (aux verb) I (subject) transfer this knowledge to him? This inversion of the positions of auxiliary verb and subject is known as Grammar Inversion. Just as a side discussion: If your question is an embedded question (meaning that your question is found within a main clause), then inversion is not necessary. Example: I will think [of] how I (subject) can (aux verb) transfer this knowledge to him. *The question is embedded within the "I will...." main clause. Therefore, your second sentence is correct. I added "of" for you because we "think of" something. The use of "could" will result in a greater degree of formality and politeness as compared to "can". (Reference URL: https://learnenglish.britishcouncil.org/en/english-grammar/can-or-could Look under "Permission".) Lastly, do take note that your first sentence is a direct question and should end with a question mark (?). However, your second sentence is an embedded questions and ends with a full stop (.) I hope this helps.

number 2 is correct

The second answer sounds correct to me. However I would slightly change it to make it sound better. I would say: I would think about how I could transfer this knowledge to him. Regards :)