Explanation:
Statement 1 is incorrect: The Ryotwari System was established during the tenure of Lord Hastings by Thomas Munro. Warren Hastings introduced a new system of revenue collection known as the farming system‘ in 1772. Under this system, European District Collectors, as the nomenclature suggested, were to be in charge of revenue collection, while the revenue collecting right was farmed out to the highest bidders. The farming system failed to improved the situation (of shortage of revenue for Company‘s expenditure) as the farmers tried to extract as much as possible without any concern for the production process. The burden of revenue demand on the peasants increased as a result and often it was so onerous that it could not be collected at all. The net outcome was the ruination of the agricultural population.
Statement 2 is correct: Warren Hasting‘s policy of Orientalism was an expression of his respect for traditional Indian culture and political pragmatism. He held that in order to establish permanent institutions of rule, knowledge about the subject population, their social customs, manners and codes, was a prerequisite. This led to the establishment of Asiatic Society of Bengal, the Calcutta Madrassa and the Sanskrit College at Benaras. This trend, however, started deteriorating with the end of Hasting‘s rule.
Statement 3 is incorrect: The First Rohilla war became a matter of Westminster politics during the Impeachment of Warren Hastings. Warren Hastings was impeached in England on charges related to the Rohilla War, the Case of Nanda Kumar, the treatment of Raja Chait Singh of Benares and the pressures on the Begum of Oudh.
- Nanda Kumar was an influential official in Bengal. He was hanged to death by the verdict of the Supreme Court at Calcutta for a petty offence of forgery. It was contended that Warren Hastings and the judge of the Supreme Court conspired against Nanda Kumar.
- Warren Hastings imposed heavy penalty on the Raja Chait Singh of Benares for his delay in payment of tribute and deposed him in an unjust manner.
- The Begums of Oudh were mother and grandmother of the Nawab of Oudh. Warren Hastings helped the Nawab by sending his troops to the help of Nawab who squeeze money from the Begums.
Thus, Option C is Correct.
