The correct answer is option 2 - Lord Lytton. The Vernacular Press Act of 1878 was introduced during his tenure as the Governor-General of India. This act was a direct result of the fear and paranoia that the British colonial government had towards the growing influence and power of the vernacular press in India.

The Vernacular Press Act aimed to impose strict regulations and control over publications in regional languages and limit their ability to criticize or question British colonial rule. Under this act, printers and publishers were required to obtain licenses and submit their printed material for scrutiny by the government. If any content was deemed seditious or sowing discontent among the Indian population, the government had the power to confiscate printing presses and prosecute offenders.

The aim of the Vernacular Press Act was to suppress the Indian press and stifle dissent against British rule, effectively curbing the freedom of expression and press in India. This act was met with strong opposition from Indian nationalists and reformers, who saw it as an infringement on their rights and a means to suppress their voice.

In summary, Lord Lytton was responsible for introducing the Vernacular Press Act of 1878 as a means to control and suppress the influence of the vernacular press in India.