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Statement 1: Within a State, the notification of an area as a Scheduled Area takes place through an Order of the President. This statement is correct. Scheduled Areas are areas in certain states of India where special provisions have been made to safeguard the rights and interests of the tribal population. The President issues orders to declare an area as a Scheduled Area.
Statement 2: The largest administrative unit forming the Scheduled Area is the District, and the lowest is the cluster of villages in the Block. This statement is correct. Scheduled Areas are typically organized at the district level and may include clusters of villages within that district.
Statement 3: The Chief Ministers of the concerned States are required to submit annual reports to the Union Home Ministry on the administration of Scheduled Areas in the States. This statement is not mentioned in the provided text. Therefore, it cannot be confirmed from the given information.
So, only statements 1 and 2 are correct based on the information provided.