Step 1: Nesidioblastosis (congenital hyperinsulinism / persistent hyperinsulinaemic hypoglycaemia of infancy) is a diffuse abnormality of pancreatic beta cells leading to unregulated insulin release.
Step 2: Because insulin secretion is excessive and inappropriate, patients present with recurrent hypoglycaemic episodes, so option 1 is true.
Step 3: The classic histopathology is diffuse proliferation and hyperplasia of islet (beta) cells budding from ductal epithelium, so option 3 is true.
Step 4: First-line medical therapy is diazoxide, which opens beta-cell K-ATP channels and suppresses insulin release, so option 4 is true.
Step 5: The condition is predominantly a disorder of neonates and infants (children), not adults. The statement that it occurs in adults more than children is false and is therefore the exception.
Conclusion: The answer is option 2 (Occurs in adults more than children).