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Consider the following statements regarding the Maratha powers?

1. The most important challenge to the decaying Mughal power came from the Maratha Empire.

2. Peshwa Balaji Vishwanath, made the Peshwa' the functional head of the Maratha Empire.

3. The system of assignment of the chauth and sardeshmukhi enabled the Peshwa to increase his personal power through patronage; this was to be a major source of strength for the Maratha Empire.

Which of the statements given above is/are not correct?

A)  1 only 

B)  3 only

C)  1 and 3 only

D)  2 and 3 only