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The Central Administrative Tribunal (CAT) is responsible for resolving disputes related to the recruitment and conditions of service of individuals appointed to public services and posts connected with the affairs of the Union. This means that option 1, which includes both 1 and 2, is incorrect. The CAT does not have jurisdiction over members of the defence forces.
Option 2, which states that the CAT adjudicates disputes only in relation to public services and posts in connection with the affairs of the Union (option 1), is the correct answer. The CAT does not handle cases concerning officers and servants of the Supreme Court or any High Court in India, which makes option 3 incorrect.
Therefore, the correct answer is option 2. It is important to note that option 4, which includes options 2 and 3, is also incorrect.