Which one among the following statements about South Asia is not correct ?

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Q: 71 (CDS-II/2011)
Which one among the following statements about South Asia is not correct ?

question_subject: 

Current Affairs

question_exam: 

CDS-II

stats: 

0,3,28,16,7,5,3

keywords: 

{'south asia': [0, 1, 1, 4], 'south asian states': [0, 0, 0, 1], '12th saarc summit': [0, 0, 0, 1], 'safta': [0, 0, 0, 1], 'india': [8, 1, 7, 13], 'bangladesh': [4, 0, 4, 2], 'china': [1, 0, 1, 2], 'democracies': [0, 0, 0, 1], 'countries': [1, 0, 2, 6], 'islamabad': [1, 1, 4, 4], 'river water sharing': [0, 0, 0, 1], 'politics': [7, 0, 4, 5]}

Option 1 states that all countries in South Asia are currently democracies. This statement is an overgeneralization and not correct. While many countries in South Asia have democratic systems of government, not all of them do. For example, Afghanistan has a presidential republic, Pakistan has a federal parliamentary system, and the Maldives has a presidential system.

Option 2 states that SAFTA (South Asian Free Trade Agreement) was signed at the 12th SAARC Summit in Islamabad. This statement is correct. SAFTA is a regional agreement aimed at promoting trade and economic cooperation among the member countries of the South Asian Association for Regional Cooperation (SAARC), and it was indeed signed at the 12th SAARC Summit held in Islamabad, Pakistan in 2004.

Option 3 states that the US and China play an influential role in the politics of some South Asian states. This statement is correct. Both the US and China have increasingly been involved in the politics and international affairs of South Asian countries, such as India, Pakistan, and Sri Lanka, due to their strategic and economic interests in the region.

Option 4 states that Bangladesh and India have agreements on river water sharing and boundary disputes. This statement is incorrect. While Bangladesh and India have indeed had disputes over river water sharing