The correct option is "1 and 3 only" because asteroids are primarily composed of rock and metals, residing mainly in the asteroid belt between Mars and Jupiter, while comets are icy bodies that release gas and dust when near the Sun, developing glowing tails. Statement 2 is incorrect as comets are typically found in the outer regions of the solar system, such as the Kuiper Belt and Oort Cloud, rather than close to the inner planets. This distinction is fundamental in understanding the composition and behavior of these celestial bodies, which is crucial for topics related to planetary science and solar system formation in UPSC examinations.