The correct option is "1 only" because the Compensatory Afforestation Fund Management and Planning Authority (CAMPA) is indeed established at both national and state levels to oversee the utilization of funds for afforestation initiatives after forest land has been diverted for non-forest purposes. However, while people’s participation is encouraged and can enhance the effectiveness of such programs, it is not mandated by the Compensatory Afforestation Fund Act, 2016. This distinction highlights the governance framework surrounding afforestation efforts in India and emphasizes the legislative focus on structured management rather than compulsory community involvement.