The correct answer to the question is:

Option 4: Neither 1 nor 2.

Reasoning:

1. Balaghat is not known for its diamond mines: Balaghat, located in the state of Madhya Pradesh in India, is primarily known for its significant manganese ore reserves. It is one of the major manganese mining regions in the country. While it does have mineral resources, including various types of ores, diamonds are not among the minerals found in Balaghat.

2. Majhgawan is not known for its manganese deposits: Majhgawan is a town in the district of Satna in Madhya Pradesh, India. Although Madhya Pradesh is known for its vast mineral wealth, including manganese deposits in certain regions, there is no specific information or reputation associated with Majhgawan regarding manganese deposits. Therefore, statement 2 is also incorrect.

Additional information:

- Balaghat: Balaghat district is known for its rich manganese deposits, which are extensively mined. The town of Balaghat is an important center for manganese mining and production in India. Manganese is a crucial element used in the production of steel, batteries, and other industrial applications.

- Majhgawan: Majhgawan, on the other hand, is not specifically known for any significant mineral deposits. It is a small town in the Satna district, and its prominence lies in being a part of the historic and religious heritage of the region rather than any specific mineral resources.

Therefore, neither Balaghat nor Majhgawan is associated with the statements mentioned in the question, making option 4 the correct answer.