"Home Charges" refers specifically to the expenditure incurred in England by the Secretary of State for India on behalf of the Indian administration. These charges were a major component of the "Drain of Wealth."

The main components of Home Charges included:

1. Interest on Public Debt raised in England.
2. Annuities on account of railway and irrigation works.
3. Payments in connection with Civil Departments in India.
4. India Office Expenses: This included the maintenance, salaries, and establishment costs of the India Office in London (Statement 1 is correct).
5. Army and Marine Charges: This included the pensions and furlough (leave) pay of British army and civil personnel (Statement 2 is correct).
6. Stores: The cost of military and other stores purchased in England.

Statement 3 is incorrect: While the expenses for waging wars outside India (such as in Afghanistan, China, or Africa) were frequently and unfairly charged to Indian revenues, these were categorized under general military expenditure or "Extraordinary Charges." They were not technically classified under the specific accounting head of "Home Charges," which primarily covered administrative, debt service, and pension-related transfers to London.

Therefore, the correct answer is (b) 1 and 2 only.