The Correct Answer is Option 2. Important Notes: • Article 263 contemplates the establishment of an Inter-State Council to effect coordination between the states and between Centre and states. Thus, the President can establish such a council if at any time it appears to him that the public interest would be served by its establishment. He can define the nature of duties to be performed by such a council and its organization and procedure. Even though the president is empowered to define the duties of an interstate council, Article 263 specifies the duties that can be assigned to it in the following manner • Enquiring into and advising upon disputes which may arise between states. • Investigating and discussing subjects in which the states or the Centre and the states have a common interest. • Making recommendations upon any such subject, and particularly for the better coordination of policy and action on it. • “The council’s function to enquire and advice upon inter-state disputes is complementary to the Supreme Court’s jurisdiction under Article 131 to decide a legal controversy between the governments. • The Council can deal with any controversy whether legal or non-legal, but its function is advisory unlike that of the court which gives a binding decision.