Read the below passage and answer the question:

Different kinds of social institutions, ranging from the family to the market, can bring people together, create strong collective identities and strengthen social cohesion. The very same institutions can also be sources of inequality and exclusions. In Indian context, the term 'diversity' emphasizes differences rather than inequalities. When we say that India is a nation of great cultural diversity, we mean that there are many different types of social groups of communities living here. These are communities defined by cultural markets such as languages, religion, sect, race or caste. When these diverse communities are also part of larger entity like a nation, then difficulties may be created by competition or conflict between them. Cultural diversity can present tough challenges. The difficulties arise from the fact that cultural identities are very powerful they can arouse intense passions and are often able to mobilise large number of people. The challenges of cultural diversity can result in communal riots, demands for regional autonomy, caste wars. The major challenges that diversity poses in India - issues such as regionalism, communalism and casteism. The concept of 'community identity' is closely associated with cultural diversity based on birth and 'belonging rather than on some form of acquired qualifications or 'accomplishment'.

Which of the following are the challenges of Cultural diversity?

Communal riots and caste wars

The correct answer is Option (3) → Communal riots and caste wars

The passage explicitly mentions these as potential consequences of cultural diversity, where strong cultural identities can lead to conflict. Cultural diversity can lead to conflicts between different communities, resulting in communal riots and caste wars. These conflicts arise due to competition or conflict between diverse communities, which can mobilize large numbers of people and intensify passions