Choose the correct answer from the options given below:
Arrange the steps in the working of the general system of Proportional Representation in the correct sequence:
1. The candidates are arranged in order of the votes they receive.
2. Each party puts up a list of candidates equal to the number of seats being fought.
3. The leftover votes, or remainder votes are divided up between the candidates.
4. Lists can be closed or open, open lists allow votes to indicate individual candidate preferences and vote for individual candidates.