Which statement best summarizes the interaction between Tennessee school bus logistics and federal S endorsement rules?

1. Tennessee controls state documents, fees, Driver Services testing logistics, and school transportation requirements, while FMCSA requires Passenger qualification plus school-bus-specific knowledge and skills testing with at least 80 percent correct on CDL knowledge tests
2. Tennessee fees replace federal Passenger endorsement qualification
3. FMCSA rules apply only to interstate freight, never to school buses
4. A Tennessee Form 2C alone authorizes school bus operation without CDL testing