The correct answer is indeed option 3, stating that both statements are correct.

Statement 1 asserts that the Third Round Table Conference discussions eventually led to the passing of the Government of India Act of 1935. This is factual because the conference was part of a series of meetings in the early 1930s between British and Indian representatives that sought to address constitutional reforms in India. The outcomes and conclusions of these discussions helped shape the Government of India Act of 1935.

Statement 2 posits that the Government of India Act of 1935 provided for the establishment of an All India Federation. This statement is also accurate as this Act did plan for a federation combining the provinces of British India and the princely states. Although this federation did not come into existence due to the reluctance of princely states to join, the provision was indeed part of the Act.

In summary, both the first and second statements are correct leading to option 3 as the correct answer.