Statement 1 is Correct: *Rhynchostylis retusa* (commonly known as the Foxtail orchid) is an epiphytic orchid. It grows on the trunks and branches of trees in open forests, using the host tree for physical support and absorbing moisture from the air, rather than acting as a parasite. Statement 2 is Incorrect: The species is not endemic to North-east India. It has a vast native range across Tropical Asia, including China, Nepal, Sri Lanka, Bhutan, Myanmar, Thailand, Malaysia, Indonesia, and the Philippines. Within India, while it is highly prominent in the North-east, it is also naturally distributed in Odisha, Andhra Pradesh, the Andaman and Nicobar Islands, and several other states. Statement 3 is Correct: It is officially recognized as the State flower of both Assam and Arunachal Pradesh. In Assam, it is culturally significant, known locally as *Kopou Phool*, and is an essential part of traditional Bihu dance attire and local wedding ceremonies. Therefore, option B is the correct answer.