You said that Qur’an does not give any introduction of the physical characteristics of God because of the limitations of human languages and comprehension i.e. man is not in a position to understand and comprehend the physical attributes of God.
“The Qur’an has categorically refuted this possibility by stating that nothing that has existence is even remotely similar to the physical attributes of God and therefore, the physical person of God cannot even be explained through analogy or comparison. According to the Qur’an, God is – Al-Ahad – i.e. absolutely unique, while at another instance (Al-Shooraa 42: 11), it declares: There is nothing that resembles Him.”
But Bible specifically describes the attributes of God. First chapter of Genesis: “God made man in His image and likeness and gave man dominion over all that He created.”
What the word “image” represents? Does it represent Physical or some Qualitative attributes of God, but not in perfection, those are inherent in humans like mercy, justice, wisdom etc.?
The word “image” in the referred verse of the Bible does not relate to God’s physical qualities. It relates specifically to the attributive qualities of God. Therefore, according to our understanding, your second stated option is correct, i.e. this refers to the qualitative attributes of God, which man possesses at a minute level.