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Explanation:
During the colonial rule in India, the British government in India had to pay for various expenses such as salaries of British personnel working in India, pensions of retired British officials, cost of goods imported from Britain, interest payments on loans taken by the British government in India, and other administrative expenses.
The funds used to pay for these expenses were known as `Home Charges` and were a significant part of the drain of wealth from India. The Home Charges included the following:
Funds used to support the India Office in London.
Funds used to pay salaries and pensions of British personnel working in India.
Funds used for waging wars outside India were not a part of the Home Charges. These were generally financed by the British government in London.
Therefore, the correct answer is option (b) 1 and 2 only.