Correct Answer:

C: 1 and 3

Explanation of Statements/Options:

Statement 1 is correct:  
 • Geothermal energy can indeed be used to produce electricity. This is done by using the heat from the Earth's interior to generate steam, which drives turbines connected to electricity generators.
 • Apart from electricity generation, geothermal energy can be used directly for various applications such as heating buildings, industrial processes, agriculture (like greenhouse heating), and for recreational purposes like bathing and cleaning.
 • The direct use of geothermal energy is efficient and environmentally friendly, as it reduces the need for fossil fuels.

Statement 2 is incorrect:  
 • While nuclear energy can be cost-effective in terms of fuel costs and can provide a stable base-load power supply, it is not always cheaper than other sources of electricity.
 • The initial capital costs for building nuclear power plants are very high, and there are additional costs related to safety, waste disposal, and decommissioning.
 • Comparatively, renewable energy sources like wind and solar have seen significant reductions in cost, making them competitive or even cheaper than nuclear energy in some regions.

Statement 3 is correct:  
 • Thermal power stations do burn fossil fuels such as coal, natural gas, or oil to create steam.
 • The steam produced is used to drive turbines, which are connected to generators that produce electricity.
 • This process is a conventional method of electricity generation and is widely used around the world, although it contributes to greenhouse gas emissions and environmental pollution.