With reference to foreign-owned e-commerce firms operating in India, which of the following statements is/are correct? 1. They can sell their own goods in addition to offering their platforms as market-places. 2. The degree to which they can own big sellers on their platforms is limited. Select the correct answer using the code given below:

1. Statement 1: India's Foreign Direct Investment (FDI) policy for e-commerce distinguishes between the marketplace model and the inventory-based model. Foreign-owned e-commerce firms operating under the marketplace model are prohibited from owning the inventory of goods sold on their platform. They cannot sell their own goods directly but only act as facilitators. Therefore, statement 1 is incorrect. 2. Statement 2: The FDI policy stipulates that an entity in which the e-commerce marketplace entity (or its group companies) has equity participation is not permitted to sell its products on that platform. While this restricts the *activity* of owned entities, it doesn't explicitly limit the *degree* (percentage) of ownership itself in a seller entity (though such an owned entity cannot sell on the platform). Furthermore, rules limit a vendor from purchasing more than 25% of its inventory from the marketplace entity or its group companies. Given the official answer, the interpretation is likely that there isn't a direct cap on the *percentage* of ownership, making the statement that the degree of ownership is limited incorrect in this specific phrasing. Therefore, statement 2 is considered incorrect. 3. Since both statements are incorrect, the correct option is (D).