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Option 3 : Both 1 and 2

          The correct option is 3 i.e, Both 1 and 2.

         Indian Council Act of 1861 -

  • The British parliament passed this act on 1st August 1861.
  • In this act, the Portfolio System was introduced.
  • This act also associated the Indians with the legislation and official works.
  • The decentralization process was started in this act.
  • This act also empowered the Viceroy to issue ordinances.
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