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Correct Option is 2 only

"74th Amendment Act of 1992 added a new Part IX-A to the Constitution of India. It is entitled 'The Municipalities' and consists of provisions from Articles 243-P to 243-ZG. In addition, the act has also added a new Twelfth Schedule to the Constitution. This schedule contains eighteen functional items of municipalities. It deals with Article 243-W. The act gave constitutional status to the municipalities. It has brought them under the purview of a justiciable part of the Constitution. In other words, state governments are under a constitutional obligation to adopt the new system of municipalities in accordance with the provisions of the act. It stipulates that the state legislature may provide the manner of election of the chairperson of a municipality. Hence only statement 2 is correct"

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