Step 1: Understand menstrual cycle phases.
The menstrual cycle consists of menstrual, follicular, ovulatory, and luteal phases regulated by hormones.
Step 2: Evaluate option (1).
Menstrual phase lasts about 3–5 days due to shedding of uterine lining. Hence correct.
Step 3: Evaluate option (2).
During follicular phase, FSH and LH actually increase to stimulate follicle development, not decrease. Hence incorrect.
Step 4: Evaluate option (3).
Ovulation occurs due to LH surge, which triggers release of ovum. Hence correct.
Step 5: Evaluate option (4).
After ovulation, Graafian follicle transforms into corpus luteum in luteal phase. Hence correct.
Step 6: Conclusion.
Thus option (2) is incorrect.