Solution:
Chanhudaro was exclusively devoted to craft production , including bead-making, shell-cutting, metal-working, seal-making, and weight-making.
The variety of materials used to make beads is remarkable: stones like carnelian (of a beautiful red colour), jasper, crystal, quartz, and steatite; metals like copper, bronze, and gold; and shell, faience and terracotta or burnt clay.
Hence, Statement 1, 2 and 3 are correct.
Some beads were made of two or more stones , cemented together, some of stone with gold caps.
The shapes were numerous: disc-shaped, cylindrical, spherical, barrel-shaped, segmented .
Some were decorated by incising or painting, and some had designs etched onto them.
Techniques for making beads differed according to the material.
Steatite , a very soft stone, was easily worked.
Some beads were moulded out of a paste made with steatite powder.
This permitted making a variety of shapes , unlike the geometrical forms made out of harder stones.
The red colour of carnelian was obtained by firing the yellowish raw material and beads at various stages of production.
Nodules were chipped into rough shapes, and then finely flaked into the final form .
Grinding , polishing and drilling completed the process.
Specialised drills have been found at Chanhudaro, Lothal and more recently at Dholavira .
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