Identify the incorrect statement regarding cyclostomes:
1. Lampreys have direct development, but Hagfishes go through a larval stage followed by metamorphosis into a juvenile form.
2. Unlike jawed vertebrates, which have three semicircular canals in each inner ear, lampreys have only two and hagfishes just one.
3. The hagfish blood is isotonic with seawater, while lampreys appear to use the same gill-based mechanisms of osmoregulation as marine teleosts.
4. Both hagfishes and lampreys have a single gonad.