The correct answer is option 2: Centre-state relations.

The Sarkaria Commission Report was a significant report that aimed at studying and making recommendations on the relationship between the central government of India and the state governments. It was formed in 1983 by the Indian government under the chairmanship of Justice Ranjit Singh Sarkaria.

The commission examined various aspects of Centre-state relations, including issues like the appointment of Governors, the use of Article 356 (which deals with the imposition of President`s Rule in a state), the distribution of powers and responsibilities between the center and the states, and the interaction and cooperation between the two levels of government.

The report provided valuable insights and recommendations to strengthen the federal system in India and promote cooperation and coordination between the central and state governments. It aimed to maintain the balance of power between the two levels of government and ensure effective governance.

Therefore, option 2 is the correct answer as the Sarkaria Commission Report primarily dealt with Centre-state relations in India.