Explanation:

• The Permanent Settlement was introduced in Bengal and Bihar in 1793 by Lord Cornwallis. It had two special features: Firstly, the zamindars and revenue collectors were converted into so many landlords. They were not only to act as agents of the Government in collecting land revenue from the ryot but also to become the owners of the entire land in their zamindaris. Their right of ownership was made  hereditary and transferable. On the other hand, the cultivators were reduced to the low status of  mere tenants and were deprived of long-standing rights to the soil and other customary rights.
• Secondly, the zamindars were to give 10/11th of the rental they derived from the peasantry to the state, keeping the only 1/11th for themselves. But the sums to be paid by them as land revenue was fixed in perpetuity. If the rental of a zamindar's estate increased owing to the extension of cultivation rapid improvement in agriculture, or his capacity to extract more from his tenants, or any other reason, he would keep the entire amount of the increase. The state would not make any further demand upon him. Major objectives behind permanent settlement system were:
• The British officials realised that they were foreigners in India, their rule would be unstable in India unless they acquired local supporters who would act as a buffer between, them and the people of  India. This argument had immediate importance as there were a large number of popular revolts in Bengal during the last quarter of the 18th century. So they brought into existence a wealthy and privileged class of zamindars which owed its existence to British rule and which would, therefore, be compelled by its own basic interests to support it. This expectation was, in fact, fully justified later when the zamindars class supported the foreign government in opposition to the rising movement for freedom. Hence, statement 1 is correct.
• The predominant motive was that of financial security. Before 1793 the Company was troubled by fluctuations in its chief source of income, the land revenue. The Company was faced with a   constant financial crisis as Bengal revenue had to finance its army engaged in wars of expansion, the civil establishment in Bengal, Madras and Bombay, and. the purchase of manufactures for export. The Permanent Settlement guaranteed the stability of income. The newly created property of the zamindars acted as a security of this. Hence, statement 2 is correct.
• Also, the Permanent Settlement was expected to increase agricultural  production.  Since the  land revenue would not be increased in future-even if the zamindar's income went up, the latter would be inspired to extend cultivation and improve agricultural productivity as was being done in Britain by its landlords. Hence, statement 3 is correct.