Option 1 states that King Krishnadevaraya was a great scholar of Telugu and Sanskrit. This statement is correct, as he was known for his proficiency in both languages.

Option 2 mentions that foreign travelers Paes and Nuniz visited his court. This statement is also correct, as these travelers documented their encounters with the king and his empire.

Option 3 states that Barbosa praised him for the great justice and equity prevailing in his empire. This statement is correct, as Barbosa, a Portuguese traveler, described Krishnadevaraya’s empire as having a fair and just system.

Option 4, which is identified as the incorrect statement, suggests that King Krishnadevaraya wrote his magnum opus, Amuktamalyada, in Sanskrit. This statement is incorrect. Amuktamalyada is a Telugu epic poem composed by the 15th-century poet Molla, and it is not attributed to Krishnadevaraya.

In conclusion, the correct statement is option 4, as King Krishnadevaraya did not write Amuktamalyada in Sanskrit.