Explanation:

• Statement 1 is correct: The Oslo Accords were a milestone in the Israeli-Palestinian peace process, representing a series of agreements between Israel and the PLO. They were intended to create a framework for future relations and were based on the principles outlined in United Nations Security Council Resolutions 242 and 338, which called for a two-state solution with Israel and Palestine living side by side in peace and security.

• Statement 2 is correct: One of the significant outcomes of the Oslo Accords was the establishment of the Palestinian Authority (PA). This body was given limited self-governance in certain areas of the West Bank and Gaza Strip, marking the first time the PLO was officially recognized as the representative of the Palestinian people and allowed a degree of administrative control over Palestinian territories.

• Statement 3 is incorrect: The Oslo Accords did not establish permanent borders between Israel and a future Palestinian state. Instead, they outlined a process for future negotiations to address core issues such as borders, the status of Jerusalem, security arrangements, and the rights of refugees. The accords were intended as a step towards a final status agreement, which remains unresolved.

Hence option 2nd is correct.