For using a multimeter to identify diode from electrical compounds, choose the correct statement out of the following about the diode:

Option 1 -

It is two terminal device which conducts current in both directions.

Option 2 -

It is two terminal device which conducts current in one direction only.   

Option 3 -

It does not conduct current gives an initial deflection which decays to zero.

Option 4 -

It is three terminal device which conducts current in one direction only between. central terminal and either of the remaining two terminals

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