Correct Option (b):
Statement 1 is correct. According to Article 110 of the Constitution, a Money Bill can only be introduced in the Lok Sabha. The Rajya Sabha possesses no power to reject or amend a Money Bill. It can only make recommendations, which the Lok Sabha may or may not accept. These recommendations must be returned to the Lok Sabha within 14 days.
Statement 2 is correct. Demands for Grants are presented to the Lok Sabha, and only the Lok Sabha has the power to vote on them. While the Rajya Sabha can discuss the Demands for Grants, it cannot exercise any voting power in this regard.
Statement 3 is incorrect. The Annual Financial Statement, commonly known as the Budget, is discussed in both Houses of Parliament. While the Lok Sabha holds primary control over financial legislation, including voting on Demands for Grants, the Rajya Sabha actively participates in the general discussion of the Budget.
Incorrect Options:
Option (a) is incorrect because Statement 2 is also correct, in addition to Statement 1.
Option (c) is incorrect because Statement 3 is not correct, as the Rajya Sabha can discuss the Annual Financial Statement.
Option (d) is incorrect because Statement 3 is not correct.