Chi-Squared Help

#1
I am working on a homework set and I am very confused on this question...Can someone help me understand?

What's wrong with this statement? Chi-square analysis will tell us whether two qualitative variables are correlated.

1.There is no statistical test for the correlation between two variables.
2.Chi-square only measures positive correlation, not negative correlation.
3.Qualitative variables cannot be correlated.
4.The test only shows that the variables are correlated if we reject H0.

Would it be 2? Because x^2 can not be negative because it is squared?
 
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