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?

1. Correct. Under the Fifth Schedule [Para 6], the President may declare any area as a Scheduled Area by order; alteration/increase also happens by Presidential order.

2. Correct. As per the criteria/guidelines used for Scheduled Areas, the administrative pattern generally runs from district as the largest unit down to a cluster of villages in a block as the smallest unit.

3. Incorrect. The Governor of a State having Scheduled Areas submits the annual report to the President regarding administration of those areas; not the Chief Minister to the Union Home Ministry.

Hence, two statements are correct.