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The correct answer is Option 2 - statements I, II, and IV are correct.
Here`s why each option is valid or invalid:
Option 1 - II and III: Statement II is correct; there is an increase in the security deposit which a candidate needs to make for contesting the election to the Lok Sabha. But, the III statement is incorrect because a candidate is allowed to stand for an election from more than one parliamentary constituency.
Option 2 - I, II, and IV: All three statements are correct as per the recent amendments to the Election Law by the Representation of the People (Amendment) Act, 1996.
Option 3 - I and III: While the first statement is correct, as mentioned before, the third statement is not. Therefore, Option 3 is incorrect.
Option 4 - I, II, III, and IV: The fourth statement is correct as now, no election will be countermanded on the death of a contesting candidate. But, as we discussed earlier, statement III is incorrect, making Option 4 incorrect.