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The correct answer is option 3, which suggests that statements 1 and 3 are correct.
Statement 1 explains that Neem oil can be used as a pesticide which is accurate. Neem oil contains Azadirachtin, a compound that has insecticidal properties and is therefore used in controlling some species of insects and mites.
Statement 3 refers to the use of Neem oil in the pharmaceutical industry, which is also accurate. Neem oil has numerous medicinal benefits and is used in various pharmaceutical products due to its antibacterial, antifungal, and anti-inflammatory properties.
Statement 2, however, is incorrect, leading to the exclusion of options 1 and 4. While Neem has various uses, the seeds are commonly used in the production of Neem oil, not specifically biofuels or hospital detergents. There`s no well-established evidence indicating a significant role of Neem seeds in these areas. Therefore, the correct answer combining the accurate statements is option 3 which includes statements 1 and 3.