Correct Option :
B) 1 and 3 only
Upon the proclamation of President's Rule under Article 356, the State Legislative Assembly is not necessarily dissolved. It may be dissolved or merely suspended. The dissolution of local bodies (municipalities and panchayats) is also not a direct or necessary consequence, as their functioning is governed by separate constitutional provisions (73rd and 74th Amendments) and state laws.
Incorrect Options:
1. Dissolution of the State Legislative Assembly: This is not a necessary consequence. The Assembly can either be dissolved or kept under suspended animation. The decision rests with the President, often based on the Governor's report.
2. Removal of the Council of Ministers in the State: This is an inevitable consequence of President's Rule. When President's Rule is imposed, the state's executive powers are assumed by the President, exercised through the Governor, leading to the dismissal of the existing Council of Ministers.
3. Dissolution of the local bodies: This is not a direct or necessary outcome. Local self-governing bodies operate under specific constitutional provisions and state legislation. Their dissolution is not automatically triggered by the imposition of President's Rule in the state.