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The correct answer is option 1, which states that statements 1 and 2 are correct. Let`s analyze each option to understand why:
Option 1: This option states that statement 1 and 2 are correct, which is the correct answer. Statement 1 is correct because the Indian Councils Act, 1861 introduced non-official members in the Governor-General`s Executive Council, making it more representative. Statement 2 is also correct because the members of the council were nominated and their functions were limited to considering legislative proposals presented by the Governor-General.
Option 2: This option states that statement 2 and 3 are correct. However, this is not accurate because statement 3 states that the Governor-General did not have effective legislative power, which is incorrect. The Governor-General did have effective legislative power under the Indian Councils Act, 1861.
Option 3: This option states that all three statements are correct, including statement 3. However, as explained in option 2, statement 3 is incorrect.
Option 4: This option states that only statement 1 is correct. However, this is also not accurate as statement 2 is also correct.
In conclusion, option 1 is the correct answer as it accurately states that statements