Read the passage given below and answer the questions that follow:

In spite of the many conflicts, the states of South Asia recognize the importance of cooperation and friendly relationship among themselves. The South Asian association for regional Cooperation (SAARC) is a major regional initiative by the South Asian states to evolve cooperation through multilateral means. It began in 1985. Unfortunately, due to persisting political differences, SAARC has not had much success. SAARC members signed the South Asian Free Trade (SAFTA) agreement which promised the formation of a free trade zone for the whole of South Asia. The SAFTA agreement was signed in 2004 and came into effect on 1 January 2006. India thinks that there are real economic benefits for all SAFTA. Some in India think that SAFTA is not worth the trouble since India already has bilateral agreements with Bhutan, Nepal and Sri Lanka.

What statement is correct about SAARC?

SAARC members signed South Asian Free Trade (SAFTA) Agreement

The correct answer is option (3) - SAARC members signed South Asian Free Trade (SAFTA) Agreement

As per the passage-

In spite of the many conflicts, the states of South Asia recognize the importance of cooperation and friendly relationship among themselves. The South Asian association for regional Cooperation (SAARC) is a major regional initiative by the South Asian states (Not East Asian) to evolve cooperation through multilateral means. It began in 1985 (not 1986). Unfortunately, due to persisting political differences, SAARC has not had much success. SAARC members signed the South Asian Free Trade (SAFTA) agreement which promised the formation of a free trade zone for the whole of South Asia. The SAFTA agreement was signed in 2004 and came into effect on 1 January 2006. India thinks that there are real economic benefits for all SAFTA. Some in India think that SAFTA is not worth the trouble since India already has bilateral agreements with Bhutan, Nepal and Sri Lanka.