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Option 1 suggests that both statements 1 and 2 are correct. Statement 1 is indeed accurate as Jawaharlal Nehru was serving his fourth term as Prime Minister when he died. However, statement 2 is inaccurate. He represented Phulpur constituency, Uttar Pradesh and not Rae Bareilly.
Option 2 considers solely statement 3 to be correct. This is indeed correct, as the first non-Congress Prime Minister of India, Morarji Desai, did come into power in 1977.
Option 3 suggests only statement 1 is correct which is true, however, it disregards the accurate statement 3.
Finally, Option 4 correctly identifies statement 1 and 3 as correct fact which makes it the correct answer: Jawaharlal Nehru was in his fourth term when he passed away and the first non-Congress Prime Minister did assume office in 1977. Statement 2 is inaccurate, thus it is omitted.