Argentine Citizenship. 2 years residency requirement. 

Q: Is it correct that I need 2 years of residency before I can apply for citizenship, but if I want to became a permanent resident instead, I would have to prove 3 years of residency in the country?.

A: CORRECT. After 2 years you can decide to apply for citizenship, but if for any reason you do not wish to become a citizen, you will have to wait one more year (3 years in total) to be able to become a permanent resident.