Explanation:

Explanation:  Statement 1 is incorrect: Dual System of Government led to the administrative breakdown in Bengal.  Statement 2 is incorrect: It was withdrawn by warren Hastings in 1772. Supplementary notes: Dual Government in Bengal  After the battle of Buxar, the East India Company became the real masters of Bengal.  Robert Clive introduced the dual system of government, i.e., the rule of the two— the Company and the Nawab—in Bengal in which both the Diwani, i.e., collecting revenues, and Nizamat, i.e., police and judicial functions, came under the control of the Company.  The Company exercised Diwani rights as the diwan and the Nizamat rights through its right to nominate the deputy subahdar.  The system held a great advantage for the Company. It left the appearance of authority to the puppet Indian ruler while keeping the sovereign power in the hands of the Company. The Nawab was responsible for maintaining peace and order, but he depended both for funds and forces upon the Company because the latter controlled the army and revenues.  The dual system led to an administrative breakdown and proved disastrous for the people of Bengal. Neither the Company nor the Nawab cared for administration and public welfare.  Warren Hastings did away with the dual system in 1772.