Explanation:

The Government of India Act 1935 provided for the establishment of an All-India Federation consisting of provinces and princely states as units. • The Act divided the powers between the Centre and units in terms of three lists–Federal List (for Centre, with 59 items), Provincial List (for provinces, with 54 items) and the Concurrent List (for both, with 36 items). The residuary powers were vested with the Governor General. • The Federal legislature had exclusive jurisdiction over the federal list while the provincial legislatures had exclusive jurisdiction over the provincial list. Provincial subjects included Police, Provincial Public Service, Education etc. Hence, statement 2 is correct. • It provided bicameral legislature at the Central which was to have an upper house (Council of States) and a lower house (Federal Assembly). The legislative powers of the Central and Provincial legislatures were subject to various limitations. Apart from the Governor-General's power of veto, a bill passed by the Central legislature was also subject to veto by the crown. Hence, statement 1 is correct. • The act provided for the adoption of dyarchy at the Centre. Consequently, the federal subjects were divided into reserved subjects and transferred subjects. • The Act discontinued the application of dyarchy introduced at the provincial level under the act of 1919 as the experiment failed miserably. The distinction between transferred and reserved subjects was removed and the whole administration was entrusted with the ministers responsible to the legislature. Hence, statement 3 is correct. • It is to be noted that the ‘Dominion Status’ which was promised by the Simon Commission in 1929, was not conferred by the Government of India Act, 1935. • Other important provisions of the Government of India Act, of 1935.: o The act provided for the establishment of a Reserve Bank of India to control the currency and credit of the country. o It provided for the establishment of a Federal Court. o It provided for the establishment of a Federal Public Service Commission, a Provincial Public Service and Joint Public Service Commission for two or more provinces. o It abolished the Council of India, established by the Government of India Act of 1858