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Option-1: The statement is correct. After the end of monarchy in Nepal, the Singha Durbar, also known as the Lion Palace, became the official seat of the government of Nepal. This change reflects the shift in power from the monarchy to a republic system.
Option-2: The statement is correct. The Narayanhity Royal Palace, which was the residence of the monarchy, has been turned into a public museum. This change signifies the transition from a monarchy to a more open and transparent society.
Option-3: The statement is incorrect. The portrait of the king in Nepalese banknotes was not replaced by the image of Pashupatinath Temple after the end of monarchy. The current banknotes in circulation in Nepal feature various historical and cultural landmarks of the country.
Therefore, the correct answer is option 2 - 1 and 2 only. The Singha Durbar became the official seat of the government, and the Narayanhity Royal Palace became a public museum, after the end of monarchy in Nepal.