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The correct answer is option 1 - Regulating Act. In 1773, the British Government took action to regulate the affairs of the East India Company by passing the Regulating Act. This act was implemented to address the corruption and mismanagement within the company. The Regulating Act introduced several changes, including the establishment of a Governor-General for the company`s territories in India. It also created a new Supreme Court in Calcutta to improve the legal system. The act aimed to bring greater oversight and control over the activities of the East India Company, giving the British Government more power in governing its territories in India. It was an important step in the British Government`s increasing involvement in Indian affairs.