The correct answer is 1 Only Explanation & Key Takeaways: East India Company • In 1600, the East India Company acquired a Charter from the ruler of England, Queen Elizabeth I, granting it the sole right to trade with the East. This meant that no other trading group in England could compete with the East India Company. Hence statement 1 is Correct • With this charter the Company ventured across the oceans, looking for new lands from which it could buy goods at a cheap price, and carries them back to Europe to sell at higher prices. • Portuguese in the sea off Surat; an impressed Jahangir granted permission to the English in early 1613 to establish a factory at Surat under Thomas Aldworth. Hence statement 2 is Incorrect • In 1611, the English started trading at Masulipatnam on the south-eastern coast of India. Later established a factory there in 1616. • The first English factory in Bengal was set up on the banks of the river Hugli in 1651. • The company also persuaded the Mughal emperor Aurangzeb to issue a Farman granting the Company the right to trade duty-free. • Aurangzeb’s Farman, for instance, had granted only the Company the right to trade duty-free. But officials of the Company, who were carrying on private trade on the side, were expected to pay duty. Hence statement 3 is Incorrect • The official misused the Farman for their personal gain and started conducting duty-free trade by using the farman, which became the bone of contention between Nawab of Bengal and the East India Company.