Statement 1 is correct. The Abbasid Empire was crucial in the transmission of various Chinese inventions such as the compass, paper, printing, and gunpowder to Europe, which significantly contributed to European advancements during the later medieval period.
Statement 2 is also correct. The House of Wisdom (Bait-ul-Hikmat) in Baghdad was a major intellectual center during the Abbasid Caliphate, where scholars translated numerous works from Greek, Persian, Indian, and other civilizations into Arabic. This facilitated a rich exchange of knowledge and helped preserve and enhance scientific and philosophical learning.
Statement 3 is incorrect. Muhammad bin Qasim's conquest of Sind was initiated by the Governor of Iraq, not directly by the Caliph. He was dispatched by the Governor with the permission of the Caliph, indicating an intermediary authority involved in the decision.
Thus, only statements 1 and 2 are correct, making Option B the accurate choice.