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Correct Option is Only 1

Statement 1 is correct - The Indian Councils Act, 1861 for the first time created provisions for representation of Indians in Legislative Council. Statement 2 is incorrect - The Govt of India Act, 1858 changed the position of Governor-General of India to Viceroy of India, therefore, Viceroy of India was given the power to nominate additional members in the Legislative Council.

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