Explanation:

Different Institutions under World Bank group

• International Bank for Reconstruction and Development (IBRD):

• Statement 1 is correct: IBRD provides commercial or concessional loan to only sovereign states or projects backed by sovereign states.

• Its loans are aimed to improve transportation and infrastructure, education, domestic policy, environmental consciousness, energy investments, healthcare, access to food and potable water, and access to improved sanitation.

• Statement 2 is incorrect: International Development Association (IDA) helps the world’s poorest countries and aims to reduce poverty by providing interest-free loans (called IDA Credits) and grants for programs that boost economic growth, reduce inequalities and improve people’s living conditions.

• International Finance Corporation (IFC): IFC was created in 1956 to foster private sector investment in developing nations. It finances the private sector investment, mobilizing capital in the international financial markets, and providing advisory services to businesses and governments.

• Multilateral Investment Guarantee (MIGA): MIGA promotes foreign direct investment (FDI) into developing countries to help support economic growth, reduce poverty, and improve people’s lives.

• International Centre for Settlement of Investment Disputes (ICSID): Facilitates arbitration and conciliation of investment disputes between governments and foreign investors.

Hence option 1st is correct.