Explanation:

Option A: It distinguished between the commercial and political functions of the Company. It allowed the Court of Directors to manage the commercial affairs but created a new body called Board of Control to manage the political affairs. Thus, it established a system of double government. Thus, the act was significant for two reasons: first, the Company’s territories in India were for the first time called the ‘British possessions in India’; and second, the British Government was given the supreme control over Company’s affairs and its administration in India.

Option C: It provided that India henceforth was to be governed by, and in the name of, Her Majesty. It changed the designation of the Governor-General of India to that of Viceroy of India. He (viceroy) was the direct representative of the British Crown in India. Lord Canning thus became the first Viceroy of India. It ended the system of double government by abolishing the Board of Control and Court of Directors. It created a new office, Secretary of State for India, vested with complete authority and control over Indian administration. The secretary of state was a member of the British cabinet and was responsible ultimately to the British Parliament.