The correct option is 1 and 3 only. Bagasse, the fibrous residue left after sugarcane extraction, is indeed utilized as biomass fuel for energy generation, making it an important resource for sustainable energy. Additionally, molasses, a byproduct of sugar production, is primarily used for producing ethanol, a renewable fuel and key ingredient in many industrial applications. While molasses can serve as a feedstock for certain chemical processes, its direct role in the production of synthetic chemical fertilizers is limited and not considered a primary application, hence the inaccuracy of statement 2. This understanding aligns with the syllabus and themes emphasized in UPSC preparation materials, such as the importance of alternative energy and industrial applications of agricultural byproducts.