With reference to the Finance Commission of India, which of the following statements is correct ?

1. The primary role of the Finance Commission of India, as defined under Article 280 of the Constitution, is to make recommendations regarding the distribution of net proceeds of taxes between the Union and the States, the principles governing grants-in-aid from the Consolidated Fund of India to the States, and measures needed to augment the Consolidated Fund of a State to supplement the resources of Panchayats and Municipalities. 2. Statement (A) is incorrect: Encouraging the inflow of foreign capital for infrastructure development falls under the domain of investment policies managed by the government (e.g., Ministry of Finance, Ministry of Commerce) and the Reserve Bank of India, not the Finance Commission. 3. Statement (B) is incorrect: The Finance Commission does not deal with the distribution of finances among the Public Sector Undertakings (PSUs). This is handled by the respective administrative ministries and the government's budgeting process. 4. Statement (C) is incorrect: While financial accountability is important, ensuring transparency in financial administration is a broader function addressed through audits (CAG), legislation (like FRBM Act), and administrative reforms, rather than being the specific mandate of the Finance Commission. 5. Since statements (A), (B), and (C) do not accurately describe the functions of the Finance Commission, none of the statements given above is correct.