Read the passage below and determine which combination

Solution

Statement 1 can be inferred. The text explicitly notes that Spotify's "targeted content personalization has helped the platform rapidly penetrate emerging markets where generic Western music libraries had historically limited user adoption." This directly supports the claim that localizing content has driven international market expansion. Thus, Statement 1 is a valid inference. Statement 2 cannot be inferred. The passage mentions that Spotify is actively "expanding its free, ad-supported listening tier and introducing podcast ad networks to attract budget-conscious listeners." Because the company is explicitly generating money through advertising streams alongside subscriptions, stating that subscription fees are its exclusive ("only") source of revenue is factually incorrect and directly contradicted by the text. Thus, Statement 2 is incorrect. Statement 3 can be inferred. The passage connects the two ideas directly: it states that "mounting competitive pressure from Apple Music, YouTube Music, and regional audio streaming apps has forced Spotify to keep its premium... fees highly competitive," and explains that "to sustain its growth" under these conditions, the company has prioritized ad-supported avenues for budget-conscious users. Therefore, the ad strategy is clearly a structural reaction to competitive and pricing pressures. Thus, Statement 3 is a valid inference.