Correct Option (B)
Statement 2 is correct. The passage explicitly defines demographic dividend as "a swelling in the working age population, which conversely means that the relative ratio of very young and very old will, for a while, be on the decline." This directly supports the assertion that the relative ratio of very young and very old will decline for a while.
Incorrect Options:
Statement 1 is incorrect. The passage emphasizes the importance of education, skill acquisition, and human capital for realizing the benefits of a demographic dividend. However, it does not state that the number of illiterate people will necessarily decrease as a direct consequence of the demographic dividend itself. The dividend presents an opportunity for human capital development, but a reduction in illiteracy requires specific policy interventions and is not an automatic outcome mentioned in the text.
Statement 3 is incorrect. The passage focuses on the economic implications of a changing age structure, specifically the rise in the working-age population and its potential impact on savings and growth. It does not discuss the stabilization of the population growth rate as a direct or immediate effect of the demographic dividend. While demographic transitions often lead to eventual stabilization, the passage does not establish this as a consequence of the dividend within the given context.