The correct answer is 1 and 3 only. Explanation & Key Takeaways: Ryotwari Settlement: • The Ryotwari system was initially introduced by Alexander Reed in Baramahal, part of the Madras Presidency, in 1792. The experiment was further developed by Thomas Munro starting in 1801 when he took over the revenue administration of the Ceded Districts. This system saw a significant expansion from 1820, following Thomas Munro's return to India as the Governor of Madras. • Instead of zamindars, the British began to collect revenue directly from the village, fixing the amount each village had to pay. • After this, they proceeded to assess each cultivator or ryot separately and thus evolved the Ryotwari System. • It created individual proprietary rights inland, but it was vested in the peasants, rather than in the zamindars • Under this system, every 'registered' holder of land is recognised as a proprietor of land and is held responsible for the direct payment of land revenue to the State. • Thomas Munro (Governor of Madras 1820-27), realised the unfairness of the early revenue settlements. • He extended the ryotwari system to all parts of the province (except the permanently settled areas) on the basis of 1/3rd of the gross produce of the holdings, which too unfortunately absorbed nearly the whole of the economic rental. • The State demand was fixed in money and had no connection with the actual yield of the holding or the prevailing prices in the market. Hence, statement 2 is not correct. • In the Bombay Presidency, the Company decided in favour of the Ryotwari system with a view to the elimination of landlords or village communities which could intercept their profits. Hence, statement 1 is correct. • The Ryotwari system did not also eliminate village elites as intermediaries between the government and the peasantry. • As privileged rents and special rights of the mirasidars were recognised and caste privileges of the Brahmans respected, the existing village power structure was hardly altered, and indeed even more strengthened by the new system. • This whole process was actually supported by a colonial knowledge, collaboratively produced by officials and Tamil writers, that the mirasidars of good agricultural castes, like the Vellalas, were the original colonists and good agriculturists. • Such stereotypes made such traditional village elites as the mirasidars pivotal to the British ideal of a sedentary agricultural community. Hence, statement 3 is correct.