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The correct answer is option 2 - 1 and 2 only.
Option 1 is incorrect because the statement claims that the Court was convinced that over-exploration of the area caused large-scale environmental degradation. However, the statement does not provide any information about the Court`s reasoning or conviction regarding the cause of environmental degradation.
Option 3 is incorrect because the statement claims that the Court directed the Central Government to prepare a rehabilitation scheme for the restoration of forest wealth. However, the statement does not mention any specific direction given by the Court regarding the preparation of a rehabilitation scheme.
Option 2 is correct because the statement mentions that the Court directed the suspension of all mining operations and transportation in Bellary district of Karnataka based on a violation of Article 21 of the Constitution, which guarantees the right to life. This indicates that the Court believed that the mining operations were causing harm to people`s right to life.
Therefore, the correct answer is option 2 - statement 1 and 2 only.