The correct option is option-1, which states that all the statements 1, 2 and 3 are correct about the Montagu-Chelmsford Reforms.

Statement 1 is correct because the Montagu-Chelmsford Reforms were approved by King George V. The reforms were implemented through the Government of India Act of 1919, which received royal assent and became law with the approval of the king.

Statement 2 is correct because the Montagu-Chelmsford Reforms made the central legislature bicameral. The Act established two houses of the central legislature - the Council of States (upper house) and the Legislative Assembly (lower house). This system of bicameral legislature was introduced to provide a representative government in India.

Statement 3 is correct because the Act explicitly mentioned the appointment of three Indian members to the Council. These Indian members were to be appointed through indirect elections, where the provincial legislative councils would elect them.

Therefore, all the statements 1, 2, and 3 are correct about the Montagu-Chelmsford Reforms.