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On which of the following subjects, does the Finance Commission of a State constituted under the Part IX of the Constitution of India make recommendations to the Governor?

1. Distribution between the State and the Panchayats of the net proceeds of the taxes by the State.

2. Determination of the taxes which may be assigned to or appropriated by the Panchayats.

3. Grants-in-aid to the Panchayats from the Consolidated Fund of the State.

Select the correct answer using the codes given below:

A)  1, 2 and 3        

B)  1 and 2 only

C)  2 and 3 only    

D)  1 and 3 only