Explanation:
According to the proposals of the Cabinet Mission announced in May, 1946, the country could have a Federal government consisting of the British and the Indian India. The Federation was naturally to look after the national and international problems like the Defense and communication, the foreign affairs and the international trade while the provinces were to enjoy complete autonomy in Provincial subjects like police, agriculture, industries, educational and many other local problems.
It did not made any recommendation related to courts or ICS. Hence statement 2 and 3 are incorrect.