The correct option is 1 only.

Statement 1 accurately describes the distinction between Photovoltaics (PV) and Solar Thermal technologies: PV converts sunlight directly into electricity through the photovoltaic effect, while Solar Thermal captures the sun's heat to produce steam for electricity generation. Statement 2 is incorrect because both technologies can generate AC or DC depending on the system design; PV systems typically employ inverters to convert DC from solar panels to AC for grid use. Statement 3 is also incorrect, as India has developed a growing manufacturing base for both Solar Thermal and Photovoltaics, with ongoing efforts to enhance domestic production capabilities. Understanding these technologies is crucial for recognizing India's energy strategy and its push towards renewable sources in line with sustainable development goals.