For using a multimeter to identify diodes from electrical components, choose the correct statement out of the following about the diode:
1. It is a two-terminal device which conducts current in both directions.
2. It is a two-terminal device which conducts current in one direction only.
3. It does not conduct current and gives an initial deflection which decays to zero.
4. It is a three-terminal device which conducts current in one direction only between the central terminal and either of the remaining two terminals.