UPSC Prelims 2021— Question 84

WaterCredit is an initiative that applies microfinance principles to water and sanitation, helping households finance toilets, water connections and related services. It was not launched under the joint aegis of WHO and the World Bank. Its approach seeks to enable low-income households to meet water and sanitation needs through financing rather than relying solely on subsidies. Thus statements 1 and 3 are correct. The final answer-key position for Set C identifies option C as the correct option. Option A — 1 and 2 only — is not correct because it does not satisfy the specific condition tested in the question; it represents an alternative that is contradicted, incomplete, or less precise than the accepted answer. Option B — 2 and 3 only — is not correct because it does not satisfy the specific condition tested in the question; it represents an alternative that is contradicted, incomplete, or less precise than the accepted answer. Option C — 1 and 3 only — is correct because it is the alternative that matches the constitutional, historical, geographical, scientific or economic principle established above. Option D — 1, 2 and 3 — is not correct because it does not satisfy the specific condition tested in the question; it represents an alternative that is contradicted, incomplete, or less precise than the accepted answer. For PYQ interpretation, the distinction between the correct alternative and merely related facts is important. UPSC often places plausible distractors beside the precise statement that matches the underlying rule, chronology, definition or empirical relationship. The answer should therefore be read against the exact wording of the question rather than against a broadly related fact.