Step 1: Understand the properties of Lactose.
Lactose is a reducing sugar, meaning it can reduce other substances and undergo mutarotation, where its specific rotation changes as the anomeric forms interconvert.
Step 2: Conclusion.
Thus, \( (+) \) Lactose does exhibit mutarotation, and statement (3) is incorrect.
Final Answer:
\[
\boxed{(+)\text{Lactose is a reducing sugar and does not exhibit mutarotation.}}
\]