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The correct answer is option 4: 1 and 2 only.
Let`s dissect each statement to better understand why they are correct or incorrect:
Statement 1: The Armed Forces Special Power Act (AFSPA) was first enforced in the hills of Assam.
This statement is incorrect. The AFSPA was first enforced in the state of Manipur in 1958, not in the hills of Assam.
Statement 2: The AFSPA is enforced in regions notified as a disturbed area.
This statement is correct. The AFSPA gives special powers to the armed forces in areas that are declared as "disturbed" by the central or state government. These disturbed areas are usually areas with a high level of insurgency or violence.
Statement 3: Under the provisions of the Act, the Chief Minister of a State can declare the whole State or part of it as a disturbed area.
This statement is incorrect. Under the provisions of the AFSPA, the power to declare an area as disturbed lies with the Governor of the state, not the Chief Minister.
Therefore, the correct answer is option 4: 1 and 2 only. The first statement is incorrect, and the second statement is correct.