The correct answer is option 2, Article-356 of the Indian Constitution. Article-356 provides for State emergency and empowers the President to suspend the constitutional arrangement in a State. This provision is known as President`s Rule. In case of failure of constitutional machinery in a State, i.e. when the State government is unable to function in accordance with the Constitution, the President can declare a State emergency under Article-356. This allows the President to assume all the powers and functions of the State government and appoint a Governor to carry out the administration on behalf of the President. The State emergency can be imposed on the grounds of emergency due to failure of constitutional machinery, financial instability, or threat to the security of the State. It is a temporary measure and should be imposed only when necessary.