Given the task definition and input, reply with output. In this task, you're given a statement and three sentences as choices. Your job is to determine which sentence can be inferred from the statement. Incorrect choices change the meaning in important ways or have details that are not mentioned in the statement. Indicate your answer as 1,2, or 3 corresponding to the choice number of the selected sentence.

Statement: As a consequence, HUD was not required to prepare either an initial or a final regulatory flexibility analysis under sections 603 and 604 of the Act, and sections 607 and 609 are not applicable. Choices: 1. While the initial analysis is always conducted, a final regulatory flexibility analysis isn't always necessary. 2. Regulatory flexibility analysis can be conducted on either an initial or final basis. 3. The HUD, by the very nature of the organization, always prepares initial and final regulatory flexibility analysis reports.
2