Education Policy lays particular emphasis on the development of the creative potential of each individual. It is based on the principle that education must develop not only cognitive capacities - both the foundational capacities of literacy and numeracy and higher-order cognitive capacities, such as critical thinking and problem solving “ but also social, ethical, and emotional capacities and dispositions.National Education Policy 2020-According to NEP 2020, A good educational institution is one in which every student feels welcomed and cared for, where a safe and stimulating learning environment exists, where a wide range of learning experiences are offered, and where good physical infrastructure and appropriate resources conducive to learning are available to all students. It aims at producing engaged, productive, and contributing citizens for building an equitable, inclusive, and plural society as envisaged by our Constitution. ? Some important fundamental principles of the NEP 2020 are- Recognizing, identifying, and fostering the unique capabilities of each student, by sensitizing teachers as well as parents to promote each students holistic development in both academic and non-academic spheres.No hard separations between arts and sciences, between curricular and extra-curricular activities, between vocational and academic streams, etc.Promoting multilingualism and the power of language in teaching and learning.Full equity and inclusion as the cornerstone of all educational decisions to ensure that all students are able to thrive in the education system.Focus on regular formative assessment for learning rather than the summative assessment that encourages todays coaching culture.Respect for diversity and respect for the local context in all curriculum, pedagogy, and policy, always keeping in mind that education is a concurrent subject.Emphasis on conceptual understanding rather than rote learning and learning-for-exams.Creativity and critical thinking encourage logical decision-making and innovation.So by all these references, we can say that Option (1) is the correct answer for the question.