The correct answer is option 2, i.e. 1, 2 and 3. Key Points Between the Centre and the states, the Constitution provides for a three-fold distribution of legislative subjects in the Seventh Schedule, viz., List-I (the Union List), List-II (the State List) and List-III (the Concurrent List) (i) Union List: The Parliament has exclusive powers to make laws with respect to any of the matters enumerated here. This list has at present 100 subjects (originally 97 subjects) like - All matters of national importance (and matters which need UNIFORM solution) Citizenship Defence, Banking, Foreign affairs, Currency, Atomic energy, Insurance, Communication, Inter-state trade and commerce, Census, Audit and so on. (ii) State List: “In normal circumstances” the state legislature has exclusive powers to make laws with respect to any of the matters enumerated here. This has at present 61 subjects (originally 66 subjects) like - All the matters of regional importance – Diversity. Public order, Police, Public health and sanitation, Agriculture, Prisons, Local government, Fisheries, Markets, Theatres, Gambling and so on. (iii) Concurrent List: Both, the Parliament and state legislature can make laws with respect to any of the matters enumerated here. This list (originally had 47 subjects) at present has 52 subjects like Criminal law and procedure, Civil procedure, Marriage and divorce, Population control and family planning, Electricity, Labour welfare, Economic and social planning, Drugs, Newspapers, Books and printing press, and others. The 42nd Amendment Act of 1976 transferred five subjects to Concurrent List from State List, i.e., Education, Forests, Weights and measures, Protection of wild animals and birds, and Constitution and organisation of all courts except the Supreme Court and the high courts; administration of justice.