Explanation:

The correct answer is "Option 3: Both 1 and 2".

Explanation:

1. The first statement is correct. According to the Census of India 2011, a person who can only read but cannot write is not considered literate. Literacy in this context requires both reading and writing skills.

2. The second statement is also correct. A person aged seven years and above who can both read and write with understanding in any language is considered literate according to the Census of India 2011. This definition highlights that literacy involves a fundamental comprehension that goes beyond mere reading or writing alone.

Both statements accurately capture the criteria used by the Census of India to define literacy, and therefore, both are correct.