The correct answer is indeed "3 only." This is because, according to the Mines and Minerals (Development and Regulation) Act, 1957, State Governments do have the authority to auction non-coal mines, contradicting statement 1. Additionally, both Andhra Pradesh and Jharkhand have reported gold mining activities, making statement 2 incorrect. Statement 3 is accurate since Rajasthan is known for its various mineral resources, including iron ore, which is a significant aspect of its mining industry. In the context of the UPSC syllabus, understanding the distribution and regulation of mineral resources in India is crucial for topics related to natural resources and economic geography.