The correct option is (a).
Explanation
Australia is a distinct landmass recognized as both a continent and a country, characterized by its specific geographical location and physical features.
- Statement 1 is Correct: Australia is the smallest continent in the world by land area. It is significantly smaller than Europe and Antarctica.
- Statement 2 is Incorrect: Australia lies entirely in the Southern Hemisphere. It is situated between the Indian Ocean and the Pacific Ocean, south of the equator.
- Statement 3 is Incorrect: Australia is commonly referred to as the "Island Continent" because it is surrounded by water on all sides. The term "Peninsula of Peninsulas" is geographically attributed to Europe due to its complex coastline and numerous peninsular extensions.
Key Takeaway: Australia is the smallest continent, located exclusively in the Southern Hemisphere, and is distinctively known as the "Island Continent."