The correct option is C
1 and 3 only
Explanation:
Statement 1 is correct: Hostilities between the English and the Mughal Emperor broke out in 1686 after the former had sacked Hugli and declared war on the Emperor. But the English had seriously miscalculated the situation and underestimated Mughal strength. The Mughal Empire under Aurangzeb was even now more than a match for the petty forces of the East India Company. The war ended disastrously for them. They were driven out of their factories in Bengal. Their factories at Surat, Masulipatam, and Vizagapataoi were seized and their fort at Bombay besieged.
Statement 2 is incorrect: English due to naval supremacy, capable of completely ruining Indian trade and shipping to Iran, West Asia, Northern and Eastern Africa and East Asia. Aurangzeb therefore permitted them to resume trade on payment of Rs. 150,000 as compensation. In 1691 the Company was granted exemption from the payment of custom duties in Bengal in return for Rs. 3,000 a year. In 1717 the Company secured from Emperor Farrukh Siyar a farman confirming the privileges granted in 1691 and extending them to Gujarat and the Deccan (NOT all parts of the Mughal Empire).
Statement 3 is correct: In 1698, the Company acquired the zamindari of the three villages Sutanati, Kalikata, and Govindpur where it built Fort William around its factory. The villages grew into a city which came to be known as Calcutta. But during the first half of the 18th century Bengal was ruled by strong Nawabs such as Murshid Quli Khan and Alivardi Khan. They exercised strict control over the English traders and prevented them from misusing their privileges. Nor did they allow them to strengthen fortifications at Calcutta or to rule the city independently. Here the East India Company remained a mere zamindar Of the Nawab.