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Correct Option is Both 1 and 2

The power of the President to set up Inter-State Councils may be exercised not only for advising upon disputes, but also for the purpose of investigating and discussing subjects in which some or all of the States of the Union and one or more of the States, or the Union have a common interest. In the exercise of this power the President has already constituted the Central Council of Health, the Central Council of Local Self-Government, the Central Council of Indian Medicine, the Central Coun­cil of Homeopathy the changing role of inter-state council The Inter-State Council was set up under Article 263 of the Constitution of India vide Presidential Order May 28, 1990.

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