Explanation:

91st Amendment Act

• The Constitution (91st Amendment) Act, 2003 inserted clause 1A in Article 164, which says “the total number of Ministers, including the Chief Minister, in the Council of Ministers in a State shall not exceed 15% of the total number of members of the Legislative Assembly of that State.
• It also provided that the number of Ministers, including the Chief Minister in a State shall not be less than twelve”.

Similar amendments were also made under Article 75.

• According to it, the PM shall be appointed by the President and the other Ministers shall be appointed by the President on the advice of the PM.
• The total number of ministers, including the Prime Minister, in the COM shall not exceed 15% of the total strength of the Lok Sabha.

The purpose of the 91st Amendment was to prevent jumbo Cabinets and the resultant drain on the public exchequer.

• Hence option 2nd is correct.