With reference to the Government of India Act, 1935, consider the following statements : 1. It provided for the establishment of an All India Federation based on the union of the British Indian Provinces and Princely States. 2. Defence and Foreign Affairs were kept under the control of the federal legislature. Which of the statements given above is/are correct?

Statement 1 is correct as the Act proposed an All India Federation comprising British Indian Provinces and Princely States as constituent units. Statement 2 is incorrect because the Act introduced dyarchy at the Center, placing "Reserved" subjects like Defence and External Affairs under the sole discretion of the Governor-General rather than the federal legislature. The core concept tested is the administrative structure and the division of powers between the executive and legislature under the Government of India Act, 1935.