The correct option is C Both 1 and 2 are correct
US, UK, Netherlands, Poland, France, the World Bank and India are together going to fund the project.
Option D is the right choice.
WHO has made both the observations. Refer to the lines: According to the W.H.O. eighty percent of diseases prevalent in India are water-borne; many of them assume epidemic proportions. The prevalence of these diseases heightens under conditions of drought. It is also estimated that India loses as many as 73 million man-days every year due to water prone diseases, costing Rs. 600 crore by way of treatment expenditure and production losses. Option C is the right choice.