The correct option is 2 and 3 only because the Sthaviravadins represent an original and conservative branch of Buddhism, aligning more closely with Theravada rather than Mahayana. The Lokottaravadins were indeed an offshoot of the Mahasanghika sect, and their belief in the transcendental nature of the Buddha was pivotal in the deification process that ultimately contributed to the development of Mahayana Buddhism. This highlights the diversity within early Buddhist sects and the evolution of Buddhist thought that led to varying interpretations and practices in different regions of India.