Correct answer: B
Explanation
Under the Government of India Act of 1935, the legislative powers were divided into three lists: the Federal List (for the center), the Provincial List (for the provinces), and the Concurrent List (for both).
Residuary Powers: The subjects that were not included in any of these three lists were known as residuary powers. According to the Act, these residuary powers were vested in the Governor-General of India. He had the authority to decide whether the Federal or the Provincial Legislature would exercise power over such subjects.
Note: In the modern Constitution of India, residuary powers are vested in the Union Parliament (Article 248), which is a departure from the 1935 Act.