Explanation:

Indian Independence Act of 1947 was passed on 18th July 1947. It was based on the Mountbatten Plan (3rd June Plan). The Act provided for the creation of two independent dominions of India and Pakistan with effect from August 15, 1947. • The most outstanding characteristic of the Indian independence act was that while the other acts of Parliament relating to the government of India sought to lay down a Constitution for the governance of India by the legislative will of the British Parliament, this act of 1947 did not lay down any such Constitution. • Between the Interim period of 1947-1950, the government of India functioned as per the provisions of the Government of India Act 1935. Hence, statement 1 is not correct. • The Indian Independence Act of 1947 made the following three changes in the position of the Assembly: o The Assembly was made a fully sovereign body, which could frame any Constitution it pleased. The act empowered the Assembly to abrogate or alter any law made by the British Parliament in relation to India o The Assembly also became a legislative body. In other words, two separate functions were assigned to the Assembly, that is, making the Constitution for free India and enacting ordinary laws for the country. These two tasks were to be performed on separate days. Hence, statement 2 is correct.