Explanation:

Simon Commission In November 1927 itself (i.e., 2 years before the schedule), the British Government announced the appointment a seven-member statutory commission under the chairmanship of Sir John Simon to report on the condition of India under its new Constitution.

All the members of the commission were British and hence, all the parties boycotted the commission.

 The commission submitted its report in 1930 and recommended:

• The abolition of dyarchy, Hence Statement 2 is incorrect.
• Extension of responsible government in the provinces,
• Establishment of a federation of British India. Hence Statement 3 is correct.
• Princely states, continuation of communal electorate and so on. Hence Statement 1 is incorrect.
• To consider the proposals of the commission, the British Government convened three round table conferences of the representatives of the British Government, British India and Indian princely states.