LEDC means that a country is a developing country (as opposed to a developed country). This distinction is connected to the Brandt line which divides the world into developed and developing country, and India is south of this line (=LEDC, less developed country). Some reasons for this is malnutrition, high child mortality and short life expectancy.
Conflict can arise when people have conflicting goals. It can also arise when power is being manipulated and rules and regulations are not being followed.
Conflicts thus are a clash of interests such as personal motives, racial and political and may be national or international, etc. Hence all the above is correct.