Which of the following statements is/are correct regarding the Monetary Policy Committee (MPC)? 1. It decides the RBI's benchmark interest rates. 2. It is a 12-member body including the Governor of RBI and is reconstituted every year. 3. It functions under the chairmanship of the Union Finance Minister. Select the correct answer using the code given below:

1. Statement 1 is correct. The primary mandate of the Monetary Policy Committee (MPC) is to determine the policy repo rate required to achieve the inflation target. This repo rate serves as the RBI's benchmark interest rate. 2. Statement 2 is incorrect. The MPC is a 6-member body, not 12. It consists of three members from the RBI (including the Governor) and three external members appointed by the central government. Members have a fixed tenure and the committee is not reconstituted every year. 3. Statement 3 is incorrect. The MPC functions under the chairmanship of the Governor of RBI, not the Union Finance Minister. 4. Therefore, only statement 1 is correct.