Both statement 1 and 2 correctly define the functions of the commercial banks in India, making option 3 the correct choice.

Statement 1 describes the banks’ function as being intermediary in the buying and selling of shares and securities on behalf of their customers. This is done through the bank`s brokerage and demat departments.

Statement 2 is also correct as commercial banks in India can act as executors and trustees of wills. When a bank acts as an executor, it follows the directions of a will to manage and distribute a person’s assets after they have passed away. When a bank is a trustee, it holds and manages assets for the benefit of someone else, according to the terms of a trust agreement.

Therefore, given both functions are true, option 3 (Both 1 and 2) is the correct answer.