Acme Insurance cannot agree with insured Jill Jenkins on the amount of a covered physical damage loss under Jill's Business Auto Coverage Form. Jill requested an appraisal. Acme and Jill each appoint an appraiser, and the appraisers appoint an umpire. An award in writing signed by any two of the three binds both Acme and Jill. One appraiser and the umpire ruled for Jill and against Acme. Which one of the following statements is true regarding this scenario?
1) The award is binding and both Acme and Jill must accept it.
2) The award is not binding and Acme can reject it.
3) The award is not binding and Jill can reject it.
4) The award is binding only if all three parties sign it.