Explanation:

• USOF aims for universal non-discriminatory access to quality ICT services at economically efficient prices to people in rural and remote areas.
• Currently, it is charged at the rate of 5%, while the telecom companies demand it to be reduced to 3%.
• It was created under the Department of Telecommunications in 2002.
• It is a non-lapsable fund, i.e., the unspent amount under a targeted financial year does not lapse and is accrued for next years’ spending.
• All credits to this fund require parliamentary approval and it has statutory support under Indian Telegraph (Amendment) Act, 2003.

Hence option 2nd is correct.