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The correct answer is option 3: Both 1 and 2.
Option 1 is correct because lines of latitude are indeed concentric circles numbered from 0° to 90°. The Equator is at 0° and the lines of latitude increase in number as you move north or south from the Equator.
Option 2 is correct because lines of latitude are circles on a globe that are parallel to the Equator. They run parallel to each other and are located to the north and south of the Equator. For example, the Tropic of Cancer is a line of latitude that is located north of the Equator, while the Tropic of Capricorn is a line of latitude that is located south of the Equator.
Both of these statements accurately describe the characteristics of lines of latitude. Therefore, the correct answer is option 3: Both 1 and 2.