Consider the following statements : 

1. In an open system, mass and energy transfer takes place.

2. In a closed system, energy transfer takes place.

3. The universe can be considered as an isolated system.

Of these statements :

(a) only 1 is correct

(b) only 2 is correct

(c) 1 and 2 are correct

(d) 1,2 and 3 are correct.