Explanation:

Only statements 1&2 are correct.

• Karpoori Thakur, a prominent Gandhian socialist leader and former Bihar chief minister will be awarded the ‘Bharat Ratna’ posthumously. 

• It is the highest civilian Award of the country which was instituted in the year 1954.

Eligibility

• Any person without distinction of race, occupation, position or sex is eligible for these awards.

• Though usually conferred on India-born citizens, the Bharat Ratna has been awarded to one naturalised citizen, Mother Teresa, and to two non-Indians, Pakistan national Khan Abdul Ghaffar Khan and former South African President Nelson Mandela. 

• The original statutes did not provide for posthumous awards but were amended in 1955 to permit them. Former Prime Minister Lal Bahadur Shastri became the first individual to be honoured posthumously. 

• It is awarded in recognition of exceptional service/performance of the highest order in any field of human endeavour.

• The recommendations for Bharat Ratna are made by the Prime Minister himself to the President and no formal recommendations for this are necessary.

• The number of annual awards is restricted to a maximum of three in a particular year.

• On conferment of the award, the recipient receives a Sanad (certificate) signed by the President and a medallion. The award does not carry any monetary grant.

• In terms of Article 18 (1) of the Constitution, the award cannot be used as a prefix or suffix to the recipient's name.

• However, should an award winner consider it necessary, he/she may use the following expression in their biodata/letterhead/visiting card etc. to indicate that he/she is a recipient of the award.

Hence option 2nd is correct.