Take an undirected graph and look for a fully-connected subset:
A set satisfying (1) is a clique. The decision version of the problem asks whether the graph contains a clique of size at least k. Karp reduced 3-SAT to it: build a vertex per literal occurrence, connect compatible literals across clauses, and a satisfying assignment becomes a clique of size equal to the clause count.
Maximum clique resists even constant-factor approximation under standard assumptions (Håstad), and the best exact algorithms run in time
polynomial only on the log of the input.