Option 1 states that PESA was meant to provide self-governance in the schedule areas. This statement is correct. PESA Law was enacted by the Parliament of India with the aim of empowering the tribal communities residing in the scheduled areas by providing self-governance and autonomy.

Option 2 states that PESA disempowers gram sabhas. This statement is incorrect. In fact, PESA Law empowers gram sabhas, which are village level democratic institutions, by recognizing their authority and decision-making powers in matters related to self-governance, natural resources, and socio-economic development.

Option 3 states that PESA protects the interests of the tribals. This statement is correct. PESA Law seeks to protect the interests of the tribal communities by safeguarding their rights over land, resources, and traditional practices. It aims to ensure their participation and involvement in the decision-making process on matters affecting their lives and livelihoods.

Option 4 states that PESA conducts public hearings to protect inheritance rights of the tribals. This statement is incorrect. PESA Law does not specifically mention conducting public hearings to protect inheritance rights of the tribals. However, it does provide measures to safeguard their rights over land and resources.

In conclusion, option 2 is the incorrect statement