Correct Answer: Option A) 1 & 2
Surya Kiran is a bilateral exercise between India and Nepal - This statement is correct. Surya Kiran is an annual military exercise conducted between the armies of India and Nepal that focuses on counter-terrorism and disaster response operations.
It focuses on counter-insurgency operations in mountainous terrain - This statement is correct. Surya Kiran exercises primarily focus on counter-insurgency and counter-terrorism operations in mountainous terrain, which is relevant to both countries given their geographical features.
It is the only trilateral military exercise involving SAARC nations - This statement is incorrect. Surya Kiran is a bilateral (two nations) exercise, not a trilateral (three nations) exercise. Furthermore, there are other military exercises involving multiple SAARC nations, such as "Dosti" (involving India, Maldives, and Sri Lanka).