The correct answer is option 1, which states that only statement 1 is correct. Let`s dissect each option to understand why this is the correct answer.

Option 1: This option states that statement 1 is correct. It claims that the Civil Disobedience movement received a massive response from business groups and peasantry. This statement is correct as the movement did attract support from various sections of society, including business groups and farmers.

Option 2: This option states that statements 1 and 2 are correct. Statement 2 claims that the movement coincided with a large-scale labor upsurge in Maharashtra. However, this is incorrect. The Civil Disobedience movement was not specifically associated with a labor upsurge in Maharashtra.

Option 3: This option states that statements 2 and 3 are correct. Statement 3 claims that the movement was marked by the mass participation of lawyers and students. However, this is also incorrect. While lawyers and students did participate in the movement, their involvement was not necessarily widespread enough to be considered "mass participation."

Option 4: This option states that all three statements 1, 2, and 3 are correct. However, as explained above, statements 2 and 3 are incorrect.