Consider the following statements: A person is said to be of sound mind for the purpose of making a contract if at the time of making it he is: 1. of the age of majority. 2. capable of understanding the contract though unable to form a rational judgment as to its effect upon his interest. 3. capable of understanding it and of forming a rational judgement as to its effect upon his interest. Which of the statements given above is/are correct?

Answer: Option D