can you answer this question im stuck between two answer choices

Consider the following statements: 1. Asymmetric information corresponds to a situation when one or both parts of the market have imperfect info about a transaction 2. The principal-agent problem is an example of adverse selection 3. The lemons problem of used cars is an example of a moral hazard A. 1...2...3 are true B. 1...2...3 are false C. 2 and 3 are false, 1 is true D. 1 and 3 are true, 2 is false E. 1 and 2 are false, 3 is true