Final answer:
NTFS is a file system that creates a Master File Table (MFT) when formatted and supports file sizes much larger than 4 GB, contrary to Option 2. It also supports both read and write operations, not just read operations as stated in Option 3. Furthermore, NTFS is a separate file system from FAT32 and does not utilize it, which contradicts Option 4.
Step-by-step explanation:
Within the NTFS file system, Option 1 is true; when an NTFS file system is formatted, the Master File Table (MFT) is indeed created. The MFT is a critical file in NTFS used to keep track of all files on the volume, including metadata about each file and folder. Option 2 is false because NTFS supports file sizes far larger than 4 GB; in fact, it can support files up to the size of 16 EB (exabytes) minus 1KB. Option 3 is also false as NTFS supports both read and write operations including permissions and encryption. Lastly, Option 4 is incorrect because NTFS and FAT32 are two distinct file systems; NTFS does not utilize the FAT32 file system.