With reference to 'Scheduled Areas' in India, consider the following statements : 1. Within a State, the notification of an area as Scheduled Area takes place through an Order of the President. 2. The largest administrative unit forming the Scheduled Area is the District and the lowest is the cluster of villages in the Block. 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. How many of the above statements are correct?

“Presidential reference was made in the backdrop of the decision rendered by the Supreme Court in Centre for Public Interest Litigation [Union of India], [(2012) 3 SCC 1, popularly known as "2G Spectrum's case" wherein eight (d) He has the power to appoint certain Commissions for the purpose of reporting on specific matters, such as, Commissions to report on the administration of Scheduled Areas and welfare of Scheduled Tribes and Backward Classes; the Finance Commission; Commission on Official Language; an Inter-State Council. (e) He has some special powers relating to "Union Territories", or territories which are directly administered by the Union (I) The President shall have certain special powers in respect of the administration of Scheduled Areas and Tribes, and Tribal Areas in Assam: (i) Subject to amendment by Parliament, the President shall have the power, by order, to declare an area to be a Scheduled Area or declare that an area shall cease to be a Scheduled Area, alter the boundaries of Scheduled Areas, and the like [Fifth Schedule, Para 6.] (ii) A Tribes Council may be established by the direction of the President in any State having Scheduled Areas and also in States having Scheduled Tribes therein but not Scheduled Areas [Fifth Schedule, Para 4]”

“'The scheduled areas are treated differently from the other areas in the country because they are inhabited by aborigines who are socially and economically rather backward, and special efforts need to be made to improve their condition. Therefore, the whole of the normal administrative machinery operating in a state is not extended to the scheduled areas and the Central government has somewhat greater responsibility for these areas.' The various features of administration contained in the Fifth Schedule are as follows: 1. Declaration of Scheduled Areas: The President is empowered to declare an area to be a scheduled area. He/she can also increase or decrease its area, alter its boundary lines, rescind such designation or make fresh orders for such redesignation on an area in consultation with the governor of the state concerned.”