The correct answer is option 'D' None of the above.

Explanation:
Woods Despatch, also known as the Despatch on Education in India, was a significant educational policy introduced in 1854 by Sir Charles Wood, the then President of the Board of Control for India. It aimed to improve the state of education in India and lay the foundation for a modern education system. However, neither of the given statements is correct regarding the Woods Despatch, and here is why:

1. The Woods Despatch did not argue that literature of the East India Company would improve the moral character of Indians. In fact, it emphasized the importance of a broad and secular education that would promote knowledge, critical thinking, and practical skills rather than focusing on religious or moral teachings.

2. The Woods Despatch did not abolish education departments of the government. On the contrary, it recommended the establishment of education departments in each province to oversee and regulate the education system. These departments were responsible for implementing the recommendations of the Despatch and ensuring the quality of education.

Rather than focusing on the given statements, it is important to understand the key features and recommendations of the Woods Despatch. Some of the significant points of the Despatch are as follows:

1. Promotion of Vernacular Education: The Despatch emphasized the importance of education in the vernacular languages of India. It recognized the need to make education accessible to the masses by using local languages as the medium of instruction.

2. Establishment of Universities: The Despatch recommended the establishment of universities in major cities to provide higher education and promote research and scholarly pursuits.

3. Teacher Training: Recognizing the need for qualified teachers, the Despatch called for the establishment of teacher training institutions to ensure the availability of well-trained educators.

4. Government Funding: The Despatch suggested that the government should take responsibility for funding education and recommended the allocation of funds for the establishment and maintenance of schools and colleges.

5. Curriculum Reforms: The Despatch proposed a revised curriculum that emphasized the teaching of science, mathematics, history, geography, and other practical subjects alongside traditional subjects like literature and philosophy.

Overall, the Woods Despatch played a significant role in shaping the education system in colonial India. It aimed to provide a modern and secular education to the Indian population, laying the foundation for the development of a modern nation.