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The Montague-Chelmsford Reforms of 1919 had the objective of extending provincial government and establishing dyarchy in the provinces.
Statement 1 in option 1 is incorrect because the objective of the reforms was not solely to give more power to the local government.
Statement 2 in option 1 is correct because one of the objectives of the reforms was indeed to establish dyarchy in the provinces.
Statement 3 in option 1 is not relevant to the question since it is not one of the given options.
Option 2 is incorrect because all three statements are not correct.
Option 3 is correct because it correctly identifies that statements 2 and 3 are correct.
Option 4 is incorrect because it only includes statements 1 and 3, but statement 2 is also correct.
To summarize, the correct answer is option 3: statement 2 (to establish dyarchy in the provinces) and statement 3 (the extension of provincial government) are the correct statements about the objective of the Montague-Chelmsford Reforms of 1919.