Regarding Wood's Dispatch, which of the following statements are true ? 1. Grants-in-Aid system was introduced. 2. Establishment of universities was recommended. 3. English as a medium of instruction at all levels of education was recommended. Select the correct answer using the code given below :

Wood’s Dispatch (1854) is correct as it introduced the grants-in-aid system to encourage private enterprise and recommended establishing universities in Calcutta, Bombay, and Madras on the model of London University. Statement 3 is incorrect because the Dispatch proposed a tiered approach: vernacular languages were to be the medium of instruction at the school level, while English was recommended only for higher education. This question tests the foundational principles of the "Magna Carta of English Education in India" and its specific provisions for the institutionalization of the modern education system.