Explanation:

- Section 5: This section of the Indian Evidence Act states that evidence may be given of facts in issue and relevant facts, which is crucial for understanding the scope of what can be presented as evidence in court.

- Section 3: Here, the act defines "evidence" and other related terms, helping to lay the groundwork for how evidence is understood legally.

- Section 7: This section deals with facts that are the occasion, cause, or effect of facts in issue, which can connect to relevant facts but doesn’t specify the permissibility of evidence of facts in issue.

- Section 1: It provides the short title, extent, and commencement, setting the boundaries and title of the act, not related to facts in issue or relevant facts.

Correct Answer: Option 1 - Section 5