According to the Sale of Goods Act, 1930, where there is a breach of warranty by the seller:

Section 59(1) of the Sale of Goods Act provides that on a breach of warranty by the seller the buyer is not, by reason only of that breach, entitled to reject the goods, but he may set up the breach against the seller in diminution or extinction of the price, or sue the seller for damages.

Each listed statement is part of the rule, so "All of the given options are correct". Under section 59(2), setting up the breach against the price does not prevent a suit for further damage.