The correct option is 1 only, as the devaluation of a currency reduces its value relative to other currencies, making domestic goods cheaper for foreign buyers. This enhanced price competitiveness can lead to an increase in export demand. However, statement 2 is incorrect because devaluation decreases the foreign value of the domestic currency, and statement 3 is not necessarily true as the trade balance may improve over time but can initially worsen due to costlier imports and elasticities of demand.