With reference to 'Scheduled Areas' in India, consider the following statements :

1. Within a State, the notification of an area as Scheduled Area takes place through an Order of the President.

2. The largest administrative unit forming the Scheduled Area is the District and the lowest is the cluster of villages in the Block.

3. The Chief Ministers of the concerned States are required to submit annual reports to the Union Home Ministry on the administration of Scheduled Areas

in the States.

How many of the above statements are correct?