The correct option is 2 and 3 only because of the following reasons:

Statement 1 is incorrect because if inflation is too high, the Reserve Bank of India (RBI) would likely sell government securities to reduce the money supply in the economy, rather than buying them. Statement 2 is correct as the RBI would sell dollars in the foreign exchange market to stabilize a rapidly depreciating rupee, thereby increasing its demand and supporting its value. Statement 3 is also correct since a fall in interest rates in the USA or EU could make Indian assets relatively more attractive, prompting the RBI to buy dollars to support Indian exports and investments while reducing the pressure on the rupee. Thus, statements 2 and 3 accurately reflect the RBI’s policy actions in response to currency fluctuations and global economic conditions.