The correct answer is Only (i) and (iii)Indian Councils Act (1861)As a result of this Act, the total number of members of the Executive Council of Governor-General became 7. (Hence statement I is correct)However, the legislative councils established by the act possessed no real power and had many weaknesses. Any bill related to public revenue or debt, military, religion, or foreign affairs could not be passed without the Governor-General‚¬„¢s assent. The council could not discuss the important matter and no financial matters at all without the previous approval of the government. they have no control over the budget. The Governments of Bombay and Madras were given the power of nominating the Advocate-General and not less than 4 and not more than 8 additional members of the Executive council for purpose of the legislation. (Hence statement II is incorrect)No distinction was made between the central and provincial subjects. (Hence statement III is correct. )It allowed for the decentralization of administration with the vesting of legislative power to the presidencies of Bombay and Madras. The portfolio system introduced by Lord Canning laid the foundations of cabinet government in India, each branch of the administration having its official head and spokesman in the government, who was responsible for its administration. The Viceroy had the power to overrule the council if necessary.