Consider the following observations about various branches of Buddhism:
1. Hinayana included what is now called the Theravada
2. Mahayana compiled Sutta Pitaka and the Vinaya Pitaka
3. Vajrayana is otherwise known as Tantric Buddhism
Which among the above statements is / are correct?


Buddhism developed in two directions represented by two different groups. One was called the Hinayana (Sanskrit: “Lesser Vehicle”), a term given to it by its Buddhist opponents. This more conservative group, which included what is now called the Theravada (Pali: “Way of the Elders”) community, compiled versions of the Buddha’s teachings that had been preserved in collections called the Sutta Pitaka and the Vinaya Pitaka and retained them as normative.
The other major group, which calls itself the Mahayana (Sanskrit: “Greater Vehicle”), recognized the authority of other teachings that, from the group’s point of view, made salvation available to a greater number of people. These supposedly more advanced teachings were expressed in sutras that the Buddha purportedly made available only to his more advanced disciples.
As Buddhism spread, it encountered new currents of thought and religion. In some Mahayana communities, for example, the strict law of karma (the belief that virtuous actions create pleasure in the future and nonvirtuous actions create pain) was modified to accommodate new emphases on the efficacy of ritual actions and devotional practices. During the second half of the 1st millennium ce, a third major Buddhist movement, Vajrayana (Sanskrit: “Diamond Vehicle”), or Esoteric Buddhism, developed in India. This movement was influenced by gnostic and magical currents pervasive at that time, and its aim was to obtain spiritual liberation and purity more speedily.

This question is a part of GKToday's Integrated IAS General Studies Module