Option 1 states that hydra only have sexual reproduction, which is incorrect. Hydra can reproduce both sexually and asexually. Sexual reproduction occurs when two hydra come together and release sperm and eggs, which then combine to form a zygote. Asexual reproduction, on the other hand, takes place through a process called budding. During budding, a small outgrowth or bud develops on the body of the hydra, which eventually detaches and becomes a new individual.

Option 2 correctly states that most frogs are oviparous animals, meaning they lay eggs that hatch outside of the body. This is a common method of reproduction for frogs.

Option 3 is incorrect as budding is indeed possible in hydra. Budding is one of the ways hydra can reproduce asexually.

Option 4 is unrelated to the topic and does not affect the correctness of the statement being asked.

Therefore, the correct answer is option 1.