With reference to the above passage, the following assumptions have been made :
1. Climate change is not a challenge for developed countries.
2. Climate change is a complex policy issue and also a development issue for many countries.
3. Ways and means of finance must be found to enable developing countries to enhance their adaptive capacity.

Which of the above assumptions is/are valid?

Correct Option: 2 and 3 only

Let us analyze the three assumptions. Assumption 1 claims that climate change is not a challenge for developed countries. This is an invalid extreme statement, as the passage explicitly states that 'Most countries do indeed treat climate change as real threat' and strive to address it. Assumption 2 states that climate change is a complex policy and developmental issue for many countries. This is valid because the passage emphasizes that addressing it involves costs, and countries like India face severe conflicts in financing development while addressing climate threats. Assumption 3 states that ways and means of finance must be found to enable developing countries to enhance their adaptive capacity. This is valid because the text explicitly emphasizes that funding is vital for India (and other developing countries) to design and implement adaptation and mitigation plans. Thus, assumptions 2 and 3 are valid. Hence, option C is correct.