`Recognition of Prior Learning Scheme` refers to a program that validates and certifies skills and knowledge that an individual has acquired informally or outside a formal learning environment. It`s typically focused on sectors where skills are often learned through non-formal channels, such as the construction industry.

Option 1 is correct since the skill sets construction workers acquire through traditional, often non-formal, channels can be certified under the Recognition of Prior Learning Scheme. This certification helps increase their job prospects and earning potential.

Option 2 is incorrect. Distance learning in universities is a form of formal education, and thus does not pertain to the Recognition of Prior Learning scheme.

Option 3 is also incorrect. The scheme is not concerned with reserving jobs for the rural and urban poor in public sector undertakings, but rather with recognizing and certifying existing skills.

Option 4 is not accurate. The Recognition of Prior Learning Scheme does not handle certification of skills obtained under the National Skill Development Programme. That programme has its own certification process.