The correct answer is option 1: 1 and 3.

Explanation:

Statement 1 is correct. Under British rule in the 19th century, the Indian economy was transformed into a colonial economy, heavily influenced and structured by Britain`s fast developing industrial economy. India became a supplier of raw materials and a market for British manufactured goods. The British introduced railways, canals, and telegraph lines, which were aimed at better integrating India into their global trading network.

Statement 2 is incorrect. The influx of cheap Indian products into England did not give a great blow to English textile industries. In fact, British textile industries benefited from India`s raw materials and the Indian market for their products. The British imposed high tariffs on Indian textiles to protect their own industries.

Statement 3 is correct. The traditional Indian village economy faced significant challenges and underwent a collapse in the 19th century due to British policies and the introduction of new commercial systems. The British discouraged Indian industries and handicrafts and promoted cash-crop agriculture instead. This led to a shift from a self-sufficient village economy to a more commercialized economy aligned with British interests.

Overall, the British rule had a profound impact on the Indian economy, transforming it into a colonial economy and disrupting traditional economic structures.