The Parliamentary Committee on Public Accounts:

Correct Option: (B)

The Public Accounts Committee (PAC) is a parliamentary committee responsible for examining the accounts showing the appropriation of sums granted by Parliament for government expenditure.

Statement 2 is correct. The PAC scrutinizes the Appropriation Accounts, which detail the expenditure of government departments against the grants sanctioned by Parliament. It also examines the Finance Accounts of the Government, which present the overall financial position, including receipts and disbursements.

Statement 3 is correct. A primary function of the PAC is to examine the reports of the Comptroller and Auditor General of India (CAG). The CAG audits government expenditure and receipts and submits various audit reports to the President, who then lays them before Parliament. The PAC thoroughly reviews these reports to ensure financial propriety, efficiency, and accountability in government spending.

Incorrect Options:

Statement 1 is incorrect. The Public Accounts Committee consists of 22 members. Out of these, 15 members are from the Lok Sabha, and 7 members are from the Rajya Sabha. The statement incorrectly specifies "not more than 25 Members of the Lok Sabha" as the total composition.