The correct answer is option 2: 1, 2, and 3 are correct statements about earthquakes.

1. Earthquakes largely occur along the converging plate boundaries: This is true. Most earthquakes occur at plate boundaries, where tectonic plates interact with each other. The majority of earthquakes occur at convergent boundaries, where two plates move towards each other, or at transform boundaries, where two plates slide past each other horizontally.

2. The point of origin of an earthquake in the lithosphere is known as the focus/hypocenter: This is true. The focus, also known as the hypocenter, is the point within the Earth`s crust where the seismic energy is released during an earthquake. It is the initial point of rupture.

3. The intensity of an earthquake decreases with distance from the epicenter: This is true. The intensity of an earthquake is strongest at the epicenter, which is the point on the Earth`s surface directly above the focus. As you move away from the epicenter, the strength of the shaking decreases.

Option 4, which states that 1 and 4 are correct, is incorrect because earthquakes can occur in various locations and are not limited to just continents.

Therefore, the correct answer is option 2