Explanation:

Both statements 2&3 are incorrect.

Article 110 of the Constitution deals with the Money Bills. It states that a bill is deemed to be a money bill if it contains ‘only’ provisions dealing with all or any of the following matters:

• The imposition, abolition, remission, alteration or regulation of any tax.
• The regulation of the borrowing of money by the Union government.
• The custody of the Consolidated Fund of India or the contingency fund of India.
• The payment of money into or the withdrawal of money from any such fund.
• The appropriation of money out of the Consolidated Fund of India.
• Declaration of any expenditure charged on the Consolidated Fund of India or increasing the amount of any such expenditure.
• The receipt of money on account of the Consolidated Fund of India or the public account of India or the custody or issue of such money, or the audit of the accounts of the Union or of a state.

Any matter incidental to any of the matters specified above.

• Money Bills can be introduced only in Lok Sabha.
• The President's recommendation is needed to introduce them.
• It cannot be amended or rejected by the Rajya Sabha.

Hence option 2nd is correct.