With reference to 'Scheduled Areas' in India, consider the following statements: 1. Within a State, the notification of an area as Scheduled Area takes place through an Order of the President. 2. The largest administrative unit forming the Scheduled Area is the District and the lowest is the cluster of villages in the Block. 3. The Chief Ministers of the concerned States are required to submit annual reports to the Union Home Ministry on the administration of Scheduled Areas in the States. How many of the above statements are correct?

1. Statement 1: This is correct. According to Para 6 of the Fifth Schedule of the Constitution of India, the President may by order declare any area within a State to be a Scheduled Area, after consultation with the Governor of that State. The notification happens through a Presidential Order. 2. Statement 2: This statement describes the potential range of administrative units that can constitute a Scheduled Area. While the Fifth Schedule does not rigidly define the largest or lowest unit, Scheduled Areas can encompass entire Districts or parts thereof, down to Blocks or clusters of villages. This statement is considered correct in reflecting this flexibility. 3. Statement 3: This is incorrect. Para 3 of the Fifth Schedule mandates the *Governor* of each State having Scheduled Areas therein shall annually, or whenever so required by the President, make a report to the President regarding the administration of the Scheduled Areas in that State. It is the Governor reporting to the President, not the Chief Minister reporting to the Union Home Ministry. 4. Therefore, only statements 1 and 2 are correct.