The correct option is C 2 only
Magnets attract magnetic materials like iron, cobalt and nickel but do not attract non-magnetic materials like gold, silver etc.
Thus, statement 1 is incorrect.
Manets lose their magnetic properties by heating, hammering and dropping from a height.
Thus, statement 2 is correct.
A freely suspended magnet rests in the North - South direction. Thus, statement 3 is incorrect.
Hence, only statement 2 is correct.