The correct option is indeed "1 and 2 only" because, under the Legal Services Authorities Act, free legal services are specifically provided to individuals whose annual income falls below a prescribed limit (which is generally Rs. 1,00,000 for the general population) and extends to specific disadvantaged groups, such as transgender persons, whose income limit is set higher at Rs. 2,00,000. However, the provisions do not universally apply to all senior citizens or those from Other Backward Classes (OBC) unless they meet specific income criteria established under different welfare policies. This differentiation emphasizes the legal system's focus on aiding marginalized groups while maintaining specific income thresholds to ensure that the assistance is targeted and effective.