The correct answer is option 3 - Both 1 and 2. Let`s analyze each statement to understand why it is correct:

1. When the Vice-President acts as the President of India, he ceases to perform the function of the Chairman of Rajya Sabha. This statement is correct. The Vice-President of India serves as the ex-officio Chairman of Rajya Sabha. However, when the Vice-President assumes the role of the President, he temporarily steps down from his position as the Chairman of Rajya Sabha. This ensures a separation of powers and prevents any conflict of interest.

2. The President of India can promulgate Ordinances at any time except when both Houses of Parliament are in session. This statement is also correct. The President of India has the power to promulgate an Ordinance, which is a temporary law, when both Houses of Parliament are not in session. This allows for urgent legislative action to be taken when the Parliament is not in session and immediate action is required.

Therefore, both statements are correct, and the correct answer is option 3 - Both 1 and 2.