The correct answer is "1 and 3 only" because the proclamation of President's Rule under Article 356 of the Indian Constitution does not automatically lead to the dissolution of the State Legislative Assembly or local bodies; these entities may continue to exist under the oversight of the central government. However, the Council of Ministers is dissolved as part of the imposition of President’s Rule, as the council is responsible to the state legislature, which may be suspended but not necessarily dissolved. This distinction is crucial in understanding the mechanics of federalism and the balance of power between state and central authorities as covered in standard UPSC materials like NCERT and other reference texts.