Explanation:

PM Modi backs delimitation exercise and grassroots democracy in J&K.

• Delimitation is the act of redrawing boundaries of an Assembly or Lok Sabha seat to represent changes in population over time.
• This exercise is carried out by a Delimitation Commission, whose orders have the force of law and cannot be questioned before any court.
• The objective is to redraw boundaries (based on the data of the last Census) in a way so that the population of all seats, as far as practicable, be the same throughout the State. Aside from changing the limits of a constituency, the process may result in change in the number of seats in a state.
• Delimitation exercises in J&K in the past have been slightly different from those in the rest of the country because of the region’s special status — which was scrapped by the Centre in August 2019.
• Until then, delimitation of Lok Sabha seats in J&K was governed by the Constitution of India, but the delimitation of the state’s Assembly seats was governed by the Jammu and Kashmir Constitution and Jammu and Kashmir Representation of the People Act, 1957.
• Assembly seats in J&K were delimited in 1963, 1973 and 1995.
• The last exercise was conducted by the Justice (retired) K K Gupta Commission when the state was under President’s Rule and was based on the 1981 census, which formed the basis of the state elections in 1996.

Hence only statement 2 is correct.