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Option 1 states that the Chairman of the Committee on Public Accounts is appointed by the Speaker of the Lok Sabha. This is correct; as per parliamentary procedure, the Speaker of the Lok Sabha appoints the Chairman of the Committee on Public Accounts.
Option 2 says that the Committee on Public Accounts consists of Members of the Lok Sabha, Members of the Rajya Sabha, and a few distinguished individuals from industry and trade. This is incorrect; the Committee on Public Accounts consists only of elected representatives from both the Lok Sabha and Rajya Sabha, but not individuals from industry or trade.
Option 3, "both 1 and 2," is incorrect because while statement 1 is correct, statement 2 is not.
Option 4, "neither 1 nor 2," is also incorrect because statement 1 is factual. Hence, the correct answer is option 1, "1 only".