With reference to Lakshadweep, which of the following statements is/are correct ?
1. It is an archipelago consisting of coral islands and reefs
2. It is the smallest Union Territory of India in terms of area
3. The main occupation of people is tourism and allied activities
Select the correct answer using the code given below :

Lakshadweep is India's smallest Union Territory, and the following points clarify the statements:

• Statement 1 is correct: Lakshadweep is an archipelago in the Arabian Sea consisting of 36 islands. These are coral islands (atolls) built up on the Laccadive-Chagos Ridge.
• Statement 2 is correct: With a total land area of only about 32.62 square kilometers, it is the smallest Union Territory of India.
• Statement 3 is incorrect: While tourism is a growing industry, the traditional and primary occupations of the people in Lakshadweep are fishing (specifically Tuna fishing) and coconut cultivation (including coir production). According to official government portals, fishing is the backbone of the island's economy.

Therefore, only statements 1 and 2 are correct.