Correct answer: B. Because the Company took revenue while administrative responsibility stayed with the Nawab
Explanation: The direct answer is B: the Company collected revenue while administrative responsibility remained with the Nawab. Dual Government in Bengal, introduced by Robert Clive after the Company obtained the Diwani in 1765, divided authority and responsibility. The East India Company controlled Diwani functions, especially revenue collection, while the Nawab nominally retained Nizamat functions such as administration and law and order. In practice, the Company possessed the financial power, because revenue supplied the money needed to influence government. At the same time, the Nawab was left responsible for administration but lacked sufficient independent resources. Step by step, the arrangement gave income to the Company, left visible responsibility with the Nawab, weakened accountability, and enabled exploitation. Option A is wrong because control of education was not the essential basis of Dual Government. Option B is correct because it states the separation of power from responsibility. Option C is wrong because the Indian National Congress was founded much later, in 1885, not by this arrangement. Option D is wrong because the Company did not write an Indian Constitution to create Dual Government. The key lesson is that the Company enjoyed authority without carrying the full public responsibility, while the Nawab carried responsibility without real power. Memory cue: Company had money and power; Nawab had responsibility but little control.