Which of the following statements are CORRECT? 1) Static allocation of all data areas by a compiler makes it impossible to implement recursion. 2) Automatic garbage collection is essential to implement recursion. 3) Dynamic allocation of activation records is essential to implement recursion. 4) Both heap and stack are essential to implement recursion.

Let us evaluate the given statements regarding runtime memory management and recursion:

1. Statement 1 is CORRECT: If all data areas are statically allocated, each function has only a single fixed memory location for its parameters and local variables. A recursive call would overwrite the values of the previous active invocation, making recursion impossible (as was the case in early Fortran).

2. Statement 2 is INCORRECT: Automatic garbage collection is used for reclaiming unreachable heap-allocated memory, but recursion simply relies on a call stack where activation records are pushed/popped following a LIFO pattern.

3. Statement 3 is CORRECT: To support recursion, each call must dynamically allocate an activation record (stack frame) on the call stack at runtime to maintain independent states for simultaneous active invocations.

4. Statement 4 is INCORRECT: A call stack is sufficient to implement recursion; dynamic heap allocation is not necessary for recursive control flow.

Therefore, statements 1 and 3 only are correct, which corresponds to option (D).