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Option 1 states that during an emergency, the Parliament can make laws on the subjects mentioned in the State List. This statement is incorrect. During an emergency, the Parliament can make laws on the subjects mentioned in the State List, but only with the approval of the President.
Option 2 states that the Fundamental Rights except for the Right to Constitutional Remedies are denied to the citizens during an emergency. This statement is correct. During an emergency, the government can suspend or limit certain fundamental rights of the citizens.
Option 3 states that in an emergency, the normal federal system is modified and the country is governed as if it was a unitary state. This statement is correct. During an emergency, the central government gains more powers and can effectively govern the entire country as if it was a unitary state.
Option 4 states that the declaration of an emergency by the President does not need the approval of the Parliament. This statement is incorrect. The President can declare an emergency, but it needs to be approved by the Parliament within one month.
Therefore, the correct answer is option 3, which states that statements 1 and 3 are correct.