The correct statement is option 2: "They worshipped both male and female deities." This reflects the religious and cultural diversity of the Indus Civilization, which is shown in artifacts like terracotta figurines and seals that depict female fertility figures, suggesting the reverence of both genders in their worship practices.

Options 1 and 3 are incorrect; while the Indus Civilization had advanced urban planning and large public baths, there is no substantial evidence of grand palaces and temples akin to those later found in Mesopotamia or Egypt. Moreover, archaeological findings indicate a lack of horse-drawn chariots, suggesting that despite their advanced society, they might not have used horses for warfare as significantly as other contemporaneous civilizations.