In the lac operon, transcription is regulated by a repressor protein and only takes place in the presence of lactose. Which of the following statements is correct?
1. The repressor protein binds to the promoter site to inhibit transcription.
2. Lactose binds to the promoter site to initiate transcription.
3. Lactose binds to the repressor protein to inhibit transcription.
4. The repressor protein binds the operator site to inhibit transcription.