Solution:1. In 1791 due to the sincere efforts of the British resident, Jonathan Duncan, a Sanskrit College was established to promote the study of Hindu laws and philosophy in Banaras. And Sir William Jones is associated with Asiatic Society of Bengal (NCERT themes-II page 232). So, #1 is wrong. A and C eliminate(d).
2. Fort William College was established by Lord Wellesley (1798) for the training of civil servants. But, Arthur Wellesley was the brother of Lord Wellesley who fought the 4th Anglo-Mysore war against Tipu Sultan. Arthur Wellesley, forced Tipu to retreat to his capital Srirangapattinam.
3. Thus by elimination, we are left with B: only 2.