The correct answer is option 3: Both 1 and 2.
Statement 1 states that the Planning Commission of India ranked Himachal Pradesh as the top state in the country on the environmental performance index. This means that Himachal Pradesh was recognized for its effective measures and initiatives in protecting and conserving the environment, surpassing other states in the country.
Statement 2 states that the World Bank approved a 1100 crore rupees loan (equivalent to approximately 110 million USD) for Himachal Pradesh to promote green initiatives and sustainable development. This loan signifies that the World Bank sees potential in Himachal Pradesh`s efforts and is willing to support and invest in their green initiatives, with the aim of promoting sustainable development in the state.
Therefore, both statements are correct and statement 3 is the correct answer.
Alert - correct answer should be option 3