Solution

· August offer came at a time, when the British Government was at a worse corner as almost all the nations of Europe fell down before the German army and England alone was trying to stand strongly to face the nazi army. Following were the proposals under the August Offer of 1940. Dominion status as the objective for India The Viceroy’s Executive Council would be expanded right away to include for the first time more Indians than whites. However, defence, finance and home portfolios were to remain with the British. Hence, statement 1 is incorrect. An advisory war council was to be established. Hence, statement 2 is correct. A representative Indian body would be formed after the war to frame a constitution for India Hence, statement 3 is correct. An assurance was given to the minorities that no transfer of power would take place “to any system of government whose authority is directly denied by large and powerful elements in Indian national life.”