The correct option is (c) 2 and 3 only.
Explanation
Tipu Sultan, the ruler of Mysore, was a formidable adversary of the British East India Company. His policies were driven by a desire to check British commercial and political expansion while modernizing his state through European (specifically French) collaboration.
Statement 1 is Incorrect: In 1785, Tipu Sultan stopped the export of sandalwood, pepper, and cardamom through the ports of his kingdom. He did not encourage trade with the British; instead, he imposed restrictions to undermine the Company's commercial interests.
Statement 2 is Correct: As part of his anti-British economic policy, Tipu disallowed local merchants from trading with the East India Company. He aimed to break the Company's monopoly and establish direct trade relations with other European powers and countries in the Middle East.
Statement 3 is Correct: Tipu Sultan maintained a close relationship with the French in India to modernize his army. He employed French officers to train his infantry and artillery in modern warfare techniques. Furthermore, he planted a 'Tree of Liberty' at Seringapatam and became a member of the Jacobin Club, reflecting his affinity for French revolutionary ideals.
Key Takeaway: Tipu Sultan actively restricted British trade within his dominion to curb their economic power while allying with the French to strengthen his military capabilities against the East India Company.