Correct Option (A):
The Government of India Act, 1935, provided for the establishment of an All India Federation. This federation was envisioned as a union of British Indian Provinces, which were mandatory members, and Princely States, which could join voluntarily through an instrument of accession. However, this federal structure never came into effect because a sufficient number of princely states did not accede to it. Therefore, statement 1 is correct.
Incorrect Options:
Statement 2 is incorrect. Under the Government of India Act, 1935, subjects such as Defence and Foreign Affairs were classified as "reserved subjects." These subjects were kept under the direct control of the Governor-General and were not accountable to the federal legislature. The Act introduced dyarchy at the Centre, where only "transferred subjects" were to be administered by ministers responsible to the legislature, while reserved subjects, including Defence and External Affairs, remained outside legislative control.
- Option 2 is incorrect because statement 2 is false.
- Option 3 is incorrect as only statement 1 is correct, while statement 2 is false.
- Option 4 is incorrect because statement 1 is correct.