With reference to the funds under Members of Parliament Local Area Development Scheme (MPLADS), which of the following statements are correct? 1. MPLADS funds must be used to create durable assets like physical infrastructure for health, education, etc. 2. A specified portion of each MP's fund must benefit SC/ST populations. 3. MPLADS funds are sanctioned on yearly basis and the unused funds cannot be carried forward to the next year. 4. The district authority must inspect at least 10% of all works under implementation every year. Select the correct answer using the code given below:

Let's evaluate each statement regarding the Members of Parliament Local Area Development Scheme (MPLADS): 1. MPLADS funds must be used to create durable assets like physical infrastructure for health, education, etc. This statement is correct. The primary objective of MPLADS is to enable MPs to recommend works of a developmental nature with emphasis on the creation of durable community assets, based on locally felt needs. These assets include infrastructure for health, education, drinking water, roads, etc. 2. A specified portion of each MP's fund must benefit SC/ST populations. This statement is correct. The MPLADS guidelines mandate that 15% of the funds are earmarked for projects in areas inhabited by Scheduled Caste populations and 7.5% for areas inhabited by Scheduled Tribe populations. This ensures inclusive development. 3. MPLADS funds are sanctioned on yearly basis and the unused funds cannot be carried forward to the next year. This statement is incorrect. MPLADS funds are non-lapsable. Unspent funds from a previous financial year can be carried forward to the subsequent years, which means that the full entitlement of an MP can be used over time. 4. The district authority must inspect at least 10% of all works under implementation every year. This statement is correct. The MPLADS guidelines include provisions for monitoring and evaluation. District authorities are required to inspect at least 10% of the works under implementation or completed each year to ensure proper utilization of funds and quality of work. Therefore, statements 1, 2, and 4 are correct.