The correct option is option 2, which states that statements 1 and 2 are true. Let`s dissect each statement to understand them better.

Statement 1: It is the first deep water facility being re-built in the northern peninsula.

This statement means that the Kankesanthurai port in Sri Lanka is the first deep water facility being reconstructed in the northern peninsula. It implies that there were no existing deep water ports in that area before.

Statement 2: The port will significantly lower the transit time of goods from and to India.

This statement suggests that the development of the Kankesanthurai port will result in shorter transit times for goods going to and coming from India. This indicates that the port`s improved infrastructure and facilities will allow for faster trade between India and Sri Lanka.

Statement 3: The responsibility of preparing the detailed project report of this work is entrusted to Engineers India Limited.

This statement claims that Engineers India Limited is responsible for preparing the detailed project report for the development of the Kankesanthurai port. However, this statement is not mentioned in the question, and there is no mention of Engineers India Limited`s involvement. Therefore, statement 3 is incorrect.

So, the correct answer is option 2 (statements 1 and