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The correct answer is option 1, which states that only statement 1 is correct.
Statement 1 says that the Nawab granted the East India Company the Nizamat powers in 1765. The Nizamat powers referred to the administrative and judicial authority granted to the British by the Nawab, allowing them to collect revenue and administer justice in Bengal.
Statement 2, on the other hand, is incorrect. It claims that the duties of collecting revenues and administration of justice were entrusted to European officials of the East India Company. However, this is not true. The actual administration and collection of revenues were handled by Indian officials known as diwans, who worked under the supervision of the British.
Therefore, option 1 is the correct answer, as only statement 1 is correct. The British were indeed granted the Nizamat powers by the Nawab, but the administration of revenue and justice was carried out by Indian officials.