Correct Answer:

B (1 and 2 only)

Explanation of Statements/Options:

Statement 1 is correct:  
 • The 'Green Credit Initiative' is indeed a response to the challenge of climate change.
 • It aims to encourage activities that contribute to environmental sustainability.
 • The initiative focuses on reducing carbon footprints and promoting eco-friendly practices.
 • It aligns with global efforts to mitigate the impacts of climate change.

Statement 2 is correct:  
 • The initiative promotes plantations on wasteland and river catchment areas.
 • This helps in increasing green cover and improving biodiversity.
 • Plantations in these areas can prevent soil erosion and enhance water retention.
 • It supports the restoration of degraded lands and contributes to ecological balance.

Statement 3 is incorrect:  
 • The 'Green Credit Initiative' is not specifically a scheme to replace kerosene oil with solar power for the rural poor.
 • While solar power initiatives exist, they are typically separate programs aimed at providing clean energy solutions.
 • The focus of the Green Credit Initiative is more on environmental conservation and afforestation.
 • This statement confuses the objectives of different government schemes related to renewable energy and environmental conservation.