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Option 1 states that the Indian Councils Act of 1861 enlarged the Governor General`s Council in order to create laws. This statement is correct. The Indian Councils Act of 1861 did indeed expand the Governor General`s Council by including additional members. This was done in order to involve Indians in the legislative process and to allow for more representation in decision-making.
Option 2 states that the Governor General was not authorized to increase the number of members. This statement is incorrect. In fact, the Governor General was given the authority to increase the number of members in the Council through the Indian Councils Act of 1861. This was done to accommodate the inclusion of Indian members and to allow for more diverse representation.
In conclusion, option 1 is correct and option 2 is incorrect. Therefore, the correct answer is option 1 only.