The correct option is (c).
Explanation
The Paik Rebellion (1817) was an armed uprising in Odisha against the British East India Company. It was triggered by the socio-economic and political changes introduced by the British following their conquest of Odisha in 1803.
Statement 1 is Incorrect: The Paiks were not the standing army of the British. They were the traditional landed militia of the Gajapati rulers of Odisha (specifically the Raja of Khurda). They performed policing and military functions for the native kings in exchange for rent-free land tenures. The British administration's decision to abolish the Paik system and resume their service lands was a primary cause of the rebellion.
Statement 2 is Correct: Led by Bakshi Jagabandhu Bidyadhar, the hereditary military commander of the King of Khurda, the rebellion started in Khurda but quickly spread to other regions. It engulfed areas such as Puri, Cuttack, Lemba, and Pipli. The rebels attacked British establishments, including police stations, administrative offices, and treasuries.
Statement 3 is Correct: After suppressing the rebellion militarily by 1818, the British government recognized that the uprising stemmed from genuine grievances regarding the rigid land revenue system and administrative oppression. Consequently, they appointed a commission to investigate the causes. Based on the findings, the British adopted a policy of 'leniency, indulgence, and forbearance' towards the people of Khurda to ensure stability. Reforms included reducing salt prices and suspending the sale of estates for revenue arrears.
Key Takeaway: The Paik Rebellion was a resistance movement by the traditional militia of Odisha against British land and revenue policies. It resulted in administrative reforms and a shift towards a more conciliatory British policy in the region.