CrO is basic, while Cr$_2$O$_3$ is amphoteric. This statement appears correct. CrO, having chromium in a lower oxidation state (+2), exhibits more basic character. Cr$_2$O$_3$ with chromium in a +3 oxidation state is amphoteric.
Nitrite is oxidized to nitrate by KMnO$_4$ in acidic medium. This is a standard redox reaction.
PdCl$_2$ is used as a catalyst in the Wacker process, which converts alkenes to aldehydes or ketones.
The earlier lanthanides are indeed quite reactive, similar to aluminum.
The question asks for the incorrect statement. Option (1), although seemingly true according to standard chemical properties, could be argued to be "incorrect" in a stricter sense. While CrO is basic and Cr$_2$O$_3$ is amphoteric, the statement suggests a simple binary comparison. However, the basicity/acidity of oxides is also related to their oxidation states. A more accurate phrasing would compare oxides of chromium in the same oxidation state. Given that all other options are definitively correct, (1) is the most likely to be considered the incorrect statement in the context of the question.