Explanation:

The Headcount ratio (HCR) is the proportion of a population that exists, or lives, below the Line of Poverty.

• It is defined as when the number of poor is estimated as the proportion of people below the Line of Poverty, it is known as the Head Count Ratio.

• National poverty headcount ratio is the percentage of the population living below the national poverty line(s). National poverty headcount ratio is the percentage of the population living below the national poverty line(s). National estimates are based on population-weighted subgroup estimates from household surveys.

Hence option 1st is correct.