The correct answer is option 3: 1 and 2 only.

Let`s break down each option to understand them better:

Option 1: "1 only" - This means that only the first statement is a feature of the Brahmadeya Grants. The first statement states that the creation of these grants resulted in the renunciation of actual or potential sources of revenue by the State. This implies that the grants were given by the State with the intention of foregoing any revenue that could have been generated from those lands.

Option 2: "2 and 3 only" - This means that the second and third statements are features of the Brahmadeya Grants. The second statement states that these grants could vary in size, ranging from a small plot of land to several villages. The third statement states that most of these grants were made in unsettled areas, meaning areas that were uninhabited or not yet developed.

Option 3: "1 and 2 only" - This option correctly identifies that both the first and second statements are features of the Brahmadeya Grants. It agrees with the explanation provided above.

Option 4: "1, 2 and 3" - This option includes all three statements as features of the Brahmadeya Grants. However, the