With reference to the period of colonial rule in India, "Home Charges" formed an important part of drain of wealth from India. Which of the following funds constituted "Home Charges" ? 1. Funds used to support the India Office in London. 2. Funds used to pay salaries and pensions of British personnel engaged in India. 3. Funds used for waging wars outside India by the British. Select the correct answer using the codes given below :

1. 'Home Charges' refer to the expenditure incurred in Britain by the Secretary of State for India and other authorities on behalf of India during the period of colonial rule. This formed a significant part of the drain of wealth. 2. Statement 1 is correct: The funds used to support the India Office in London, which was the administrative headquarters for British rule in India located in Britain, were a component of Home Charges. 3. Statement 2 is correct: Funds used to pay salaries and pensions of British personnel (both civil and military) engaged in India, but paid out in Britain, constituted a major part of the Home Charges. 4. Statement 3 is incorrect in the context of the strict definition of 'Home Charges'. While India was often made to bear the expenses for waging wars outside India by the British (contributing to the overall drain of wealth), these expenses were not always classified under 'Home Charges', which specifically related to expenditures incurred *in* Britain. However, interest on loans taken to finance such wars could be part of Home Charges. Therefore, only funds for the India Office and salaries/pensions paid in Britain (Statements 1 and 2) were definitely part of the Home Charges.