Solution:

• Option (1) – True: Unicode was designed to be backward compatible with ASCII. The first 128 Unicode characters (U+0000 to U+007F) are identical to ASCII, ensuring compatibility.
• Option (2) – False: ASCII uses 7 bits per character, while Unicode uses up to 16 bits or more (e.g., UTF-16, UTF-32 encodings).
• Option (3) – False: Unicode and ASCII share the same first 128 characters; they are not completely different.
• Option (4) – False: Unicode can represent far more characters than ASCII, not fewer.

✅ Correct Answer: (1) Unicode is backward compatible with ASCII and includes all ASCII characters in its encoding.