Which of the following options is correct in respect of Arbitration?

Arbitration is a term derived from the nomenclature of Roman law. Arbitration is a private arrangement of taking disputes to a less adversarial, less formal and more flexible forum and abiding by judgment of a selected person instead of carrying it to the established courts of justice. Arbitration is a ADR mechanism. Conciliation is a form of ADR mechanism. Hence option 3 is wrong.