The correct option is 1 and 2 only because a tight monetary policy by the US Federal Reserve can lead to higher interest rates, driving investors to withdraw investments from emerging markets, resulting in capital flight (Statement 1). This capital flight can subsequently escalate the borrowing costs for firms with existing External Commercial Borrowings (ECBs) as they face increased currency volatility and potential liquidity shortages (Statement 2). However, Statement 3 is incorrect; devaluation of the domestic currency increases the currency risk for ECBs, as repayment costs in local currency terms become more expensive, leading to greater risk rather than decreased risk.