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The correct answer is option 1, which states that statements 1 and 2 only are correct.
Let`s analyze each statement to understand why.
Statement 1: Provision was to be made for the participation of Indian States in the Constitution-making body. This statement is correct because the Cripps Proposals included a provision for the inclusion of representatives from the Indian States in the constitutional discussions.
Statement 2: The British Government undertook to accept and implement the Constitution. This statement is also correct. The Cripps Proposals guaranteed that the British Government would accept and implement the Constitution that would be formulated by the Constitution-making body.
Statement 3: All provinces of British India were to give an undertaking about the acceptance of the Constitution. This statement is not mentioned in the Cripps Proposals.
Statement 4: In the ongoing World War, no resources of British India would be used. This statement is also not mentioned in the Cripps Proposals.
Therefore, statements 1 and 2 are the only correct statements, making option 1 the correct answer.