Explanation:

- Statement 1: Under Akbar, the system of Zabt was indeed established over a vast region from Punjab to Awadh. This revenue system involved assessing the land and fixing a standard measurement of revenue, which was collected in cash.

- Statement 2: In the seventeenth century, the Zabt system did lose ground to the Kankut system in some areas of North India. Kankut was a more traditional system involving estimation or actual measurement of the crops.

- Option 1: 1 only - Incorrect. While statement 1 is true, statement 2 is also valid.

- Option 2: 2 only - Incorrect. Statement 2 is true, but statement 1 is also true.

- Option 3: Both 1 and 2 - Correct. Both statements given are accurate.

- Option 4: Neither 1 nor 2 - Incorrect. Both statements are correct.

Option 3: Both 1 and 2