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Which of the following correctly distinguishes Augmented Reality (AR) from Virtual Reality (VR)?

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In the context of digital technologies for entertainment, consider the following statements:

1. In Augmented Reality (AR), a simulated environment is created and the physical world is completely shut out.

2. In Virtual Reality (VR), images generated from a computer are projected onto real-life objects or surroundings.

3. AR allows individuals to be present in the world and improves the experience using the camera of smart-phone or PC.

4. VR closes the world, and transposes an individual, providing complete immersion experience.

Which of the statements given above is/are correct?
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