The correct option in respect of the given statements is:

Option 3: Statement-I is correct but Statement-II is incorrect.

Statement-I is correct: In India, prisons are managed by State Governments with their own rules and regulations for the day-to-day administration of prisons. The management and administration of prisons are primarily the responsibility of the respective state governments. Each state has its own laws, rules, and regulations governing the functioning of prisons within their jurisdiction. This includes aspects such as the classification of prisoners, maintenance of prison facilities, provision of basic amenities, and implementation of rehabilitation and reformation programs.

Statement-II is incorrect: The Prisons Act, 1894 does not expressly keep the subject of prisons in the control of Provincial Governments. The Prisons Act, 1894 is a central legislation enacted by the British colonial government during the colonial era. It provides a general framework for the regulation and management of prisons in British India. However, after India gained independence in 1947, the subject of prisons and their administration was included in the State List of the Indian Constitution. This means that the state governments have the authority and responsibility to manage and administer prisons within their respective states, and they can enact their own laws and regulations in this regard. The Prisons Act, 1894 continues to be in force in some states as an enabling act, but its provisions may have been modified or supplemented by state-specific laws.

Therefore, while Statement-I is correct in stating that prisons in India are managed by State Governments, Statement-II is incorrect in suggesting that the Prisons Act, 1894 expressly kept the subject of prisons in the control of Provincial Governments.