With reference to the funds under Members of Parliament Local Area Development Scheme (MPLADS), which of the following statements are correct? 1. MPLADS funds must be used to create durable assets like physical infrastructure for health, education, etc. 2. A specified portion of each MP's fund must benefit SC/ST populations. 3. MPLADS funds are sanctioned on yearly basis and the unused funds cannot be carried forward to the next year. 4. The district authority must inspect at least 10% of all works under implementation every year. Select the correct answer using the code given below:

1. Statement 1 is correct. The primary objective of the Members of Parliament Local Area Development Scheme (MPLADS) is to enable MPs to recommend works of developmental nature with emphasis on the creation of durable community assets based on locally felt needs, including physical infrastructure for health, education, etc. 2. Statement 2 is correct. The MPLADS guidelines mandate that a specified portion of each MP's fund must benefit SC/ST populations. Specifically, MPs are to recommend every year, works costing at least 15 per cent of the MPLADS entitlement for the year for areas inhabited by Scheduled Caste (SC) population and 7.5 per cent for areas inhabited by Scheduled Tribe (ST) population. 3. Statement 3 is incorrect. MPLADS funds are non-lapsable. Funds released by the Government of India are deposited directly into the bank accounts of the District Authority. Any unused funds at the end of the year are carried forward to the next year. 4. Statement 4 is correct. The guidelines stipulate that the District Authority shall inspect at least 10% of the works under implementation every year to ensure quality and proper execution. 5. Therefore, statements 1, 2, and 4 are correct.