Explanation:

Correct Answer: B [2-1-3]

Explanation:Subordinate isolation(1813-1857): As the imperial idea grew and the theory of Paramountcy began to develop—Indian states were supposed to act in subordinate cooperation with the British Government and acknowledge its supremacy.
States surrendered all forms of external sovereignty and retained full sovereignty in internal administration. British Residents were transformed from diplomatic agents of a foreign power to executive and controlling officers of a superior government.

Policy of Ring Fence (1765-1813):
This policy was reflected in Warren Hastings’ wars against the Marathas and Mysore, and aimed at creating buffer zones to defend the Company’s frontiers. The main threat was from the Marathas and Afghan invaders (the Company undertook to organise Avvadh’s defence to safeguard Bengal’s security).

Policy of Subordinate Union (1857-1935):
The year 1858 saw the assumption of direct responsibility by the Crown. Because of the states’ loyalty during the 1857 revolt and their potential use as breakwaters in political storms of the future, the policy of annexation was abandoned. The new policy was to punish or depose but not to annex.
After 1858, the fiction of authority of the Mughal emperor ended; sanction for all matters of succession was required from the Crown since the Crown stood forth as the unquestioned ruler and the paramount power.