Read the following passage and answer the item that follows. Your answer to this item should be based on the passage only.

Unless the practices degrading a river's catchment forest are checked soon, and large-scale replanting of the bared hillsides is undertaken without delay, soil erosion by monsoon runoff will worsen to the point that the terraced farming that sustains the valley's villages becomes impossible within a generation. The badlands now spreading across parts of the neighbouring plateau, the legacy of decades of unchecked clear-felling there, are a stark warning of what unmanaged deforestation ultimately produces. Similar bare, gullied ground is already appearing on slopes once thought too remote to be at risk.

According to the passage given above, unchecked deforestation in the catchment will ultimately lead to which of the following?

1. Loss of the soil resource that terraced farming depends on

2. Disappearance of grazing land for livestock

3. Loss of water needed for cultivation on the terraces

Select the correct answer using the code given below.