Step 1: Identifying the most common use of terracotta.
The most common use of terracotta is in sculpture and pottery. These two applications are traditionally associated with terracotta. Machu Picchu and electrical components are not typical uses for terracotta.
Step 2: Analyzing the options.
- (1) (A), (B) and (D) only: Incorrect, paper product and Machu Picchu are not common uses of terracotta.
- (2) (B) and (D) only: Incorrect, Machu Picchu is not an application of terracotta.
- (3) (B) and (E) only: Correct, sculpture and pottery are the most common uses of terracotta.
- (4) (E) and (D) only: Incorrect, Machu Picchu is not a typical use of terracotta.
Step 3: Conclusion.
The correct answer is (B) and (E) only, which is option (3).