Explanation:

- Civil War in America (3): The American Civil War (1861-1865) disrupted cotton supplies to Europe, especially affecting British industries.

- Cotton boom in India (2): India's cotton exports surged as it filled the supply gap left by the American South due to the Civil War.

- Decline in the export of Indian Cotton (1): After the Civil War ended, American cotton re-entered the global market, causing India's export boom to decline.

The correct chronological sequence is: 3, 2, and 1.

Option 3: 3, 2, and 1