A nurse in a mental health unit is discussing the concepts of competency and capacity with a newly licensed nurse. Which of the following statements by the newly licensed nurse indicates an understanding of the concepts?

"Competency and capacity are often discussed as being the same thing, but they are different."

"Capacity and competency are the same thing and can be used interchangeably."

"A client who has been deemed legally incompetent can provide informed consent for treatment."

"Competency and capacity are rarely a concern when caring for clients who have a mental illness."