Government Of India Act 1935

* **Statement 1 is correct.** The Government of India Act, 1935, proposed an All India Federation that would encompass both the British Indian Provinces and the Princely States. However, this federation never fully materialized due to the reluctance of many Princely States to join. * **Statement 2 is incorrect.** The Act reserved key subjects like Defence and Foreign Affairs under the control of the Governor General, representing the British Crown, and not the federal legislature. This ensured British dominance in these crucial areas.