Answer : 2. "(B) and (C) are true"
Explanation :

Inland waterway is a network of rivers, canals, backwaters, and creeks that can be utilized for transportation instead of or in addition to roads and rails. India has nearly 14,500 km of navigable waterways and it moves about 44 million tonnes of cargo annually through these waterways using mechanized vessels and country boats in an organized manner in the waterways of Goa, West Bengal, Assam, and Kerala. However, inland water transport (IWT) accounts for less than 1% of its freight traffic, compared to 35% in Bangladesh and 20% in Germany. Hence, statement 1 is not correct. Under the National Waterways Act, 2016, a total of 111 waterways have been declared as National Waterways (NWs). Hence, statement 3 is correct. It allows the Central Government to regulate these waterways for development with respect to shipping, navigation, and transport by means of mechanically propelled vessels. The total cargo moved by inland waterways was just 0.1 % of the total inland traffic in India. Hence, statement 2 is not correct.