Option 3: Both 1 and 2 are correct.

Krishna Deva Raya was a famous ruler of the Vijayanagara Empire in South India during the 16th century. He is known for his administrative reforms, military conquests, and patronage of arts and literature. The taxation system of his reign was one of the most efficient and organized in the medieval period.

1. The tax rate on land was fixed depending on the quality of the land.

This statement is correct. Krishna Deva Raya introduced a system of land measurement and assessment, known as Karnam or Patwari system, to determine the quality and productivity of the land. Based on this assessment, the tax rate on land was fixed. The tax was usually collected in kind, such as crops or livestock, rather than in cash. This system ensured that the tax burden was distributed fairly among the peasants and landowners.

2. Private owners of workshops paid an industries tax.

This statement is also correct. Krishna Deva Raya levied an industries tax, known as Shulka, on private owners of workshops and factories. This tax was collected based on the type and size of the industry and the amount of revenue generated. The industries tax was a significant source of revenue for the kingdom, as the Vijayanagara Empire was known for its flourishing industries, including textiles, metalworking, and handicrafts.

Overall, the taxation system of Krishna Deva Raya was characterized by its fairness, efficiency, and effectiveness. The ruler and his advisors took measures to prevent corruption, ensure accountability, and promote economic growth. They also encouraged trade and commerce by reducing taxes on imports and exports. As a result, the Vijayanagara Empire was able to sustain its prosperity for several decades.