The correct answer is option 1: States and the Union. The concurrent list includes subjects on which both the State governments and the Union government have the power to make laws. This means that both the State governments and the Union government can enact laws on these subjects. The subjects in the concurrent list are mentioned in the Seventh Schedule of the Constitution of India. Some examples of subjects in the concurrent list include criminal law, marriage and divorce, bankruptcy and insolvency, education, and social security. It is important to note that while both the State governments and the Union government can make laws on these subjects, in case of a conflict or inconsistency between State laws and Union laws, the Union law will prevail.