Option 1 states that the Charter Act of 1853 abolished the East India Company`s trade monopoly in India. This is incorrect. The Company`s monopoly ended through the Charter Act of 1833, not the one in 1853. The 1853 Act only renewed the power of the company for an indefinite period while initiating some reforms.

Option 2, the correct answer, says that the Government of India Act 1858 led to the abolition of the East India Company and undertook the ruling of India directly. It`s right. After the 1857 rebellion, the British government took over the political authority and administration in India from the East India Company, ruling directly.

Option 3 states both given statements are correct. Since the first statement is incorrect, this option is also wrong.

Option 4 says that both statements are incorrect. We know that statement two is correct, so use process of elimination to discard this option.