With reference to the 15th Finance Commission's recommendations on grants to local bodies, consider the following statements: 1. The Commission recommended tying a portion of the grants for rural local bodies to sanitation and water supply. 2. For urban local bodies, grants are distributed based on a categorization of million-plus cities and non-million-plus cities. 3. Bihar receives a significant portion of these grants, which are entirely untied and can be spent at the absolute discretion of the Panchayats. Which of the statements given above is/are correct?

Options:

• A: 2 and 3 only
• B: 1 and 3 only
• C: 1 and 2 only
• D: 1, 2 and 3

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