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The correct answer is B: Only 1 and 2.

Correct Statements:

1. 'It rejects the caste system.' — CORRECT. Buddhism promotes equality and rejects the rigid caste hierarchy prevalent in ancient Indian society, advocating a spiritual path accessible to all regardless of social status.

2. 'It promotes the Eightfold Path.' — CORRECT. The Eightfold Path is a central teaching of Buddhism, outlining Right Understanding, Right Thought, Right Speech, Right Action, Right Livelihood, Right Effort, Right Mindfulness, and Right Concentration — intended to lead to enlightenment and the cessation of suffering.

Incorrect Statements:

3. 'It focuses on achieving Moksha.' — INCORRECT. Buddhism focuses on attaining Nirvana — liberation from the cycle of birth and rebirth (samsara) and cessation of suffering. While conceptually similar to the Hindu notion of Moksha, Nirvana is philosophically distinct in its context and emphasis within Buddhist thought.

4. 'It encourages idol worship.' — INCORRECT. Early Buddhism did not encourage idol worship; it centered on teachings and meditation. Idol worship became more prevalent in later Mahayana Buddhism but is not a foundational aspect of Buddhist philosophy.

Additional Information — Core Teachings of Buddhism:

• Four Noble Truths: The truth of suffering (dukkha), its cause (craving/tanha), its cessation, and the path leading to its cessation.

• Eightfold Path: A practical guide to ethical and mental development, leading to freedom from attachment, delusion, and ultimately to Nirvana.

• Nirvana: The ultimate goal in Buddhism — the end of the cycle of rebirth and liberation from suffering.