Correct Answer: Option A) 1 and 2 only
Mahe is a part of the Union Territory of Puducherry (not Lakshadweep as stated in statement 3). It is an enclave territory surrounded by Kerala state. Mahe is indeed surrounded by Kerala districts and shares borders with both Kannur and Kozhikode districts.
Statement 1 is correct: Mahe is a Union Territory, specifically a district of Puducherry, and is completely surrounded by Kerala.
Statement 2 is correct: Mahe does share borders with both Kannur and Kozhikode districts of Kerala. It is situated at the mouth of the Mahe River (also known as Mayyazhipuzha).
Statement 3 is incorrect: Mahe is not part of Lakshadweep. It is one of the four districts of the Union Territory of Puducherry (the other three being Puducherry, Karaikal, and Yanam).