The correct answer is option 'A' (1 and 2 only).

The Indian Constitution divides the legislative powers between the Union Government and the State Governments. The State List, which is mentioned in the Seventh Schedule of the Constitution, contains subjects on which the State Governments have exclusive jurisdiction to make laws. The Union List, on the other hand, contains subjects on which only the Union Government can make laws. Concurrent List includes subjects on which both the Union and State Governments can make laws, but in case of a conflict, the Union law prevails.

Among the options given, the following are included in the State List:

1. Dispensaries: Dispensaries fall under the State List. The establishment and maintenance of dispensaries for the provision of healthcare services to the people within the state's jurisdiction are the responsibility of the State Government. Dispensaries are usually smaller medical facilities that provide basic medical care, diagnosis, and treatment.

2. Hospitals: Hospitals are also included in the State List. The State Government is responsible for the establishment, maintenance, and management of hospitals within its jurisdiction. Hospitals are larger medical institutions that provide a wide range of medical services, including specialized treatments, surgeries, and emergency care.

The following options are not included in the State List:

3. Medical education: Medical education falls under the Union List. The Union Government is responsible for regulating and overseeing medical education in the country. Medical colleges, curriculum, standards, and licensing of medical practitioners are governed by the Medical Council of India (MCI), a statutory body under the Ministry of Health and Family Welfare.

4. Drug administration: Drug administration is also included in the Union List. The Union Government is responsible for regulating and controlling the manufacturing, distribution, and sale of drugs and pharmaceuticals. The Central Drugs Standard Control Organization (CDSCO), under the Ministry of Health and Family Welfare, is the primary regulatory authority for drugs in India.

In conclusion, the State List of the Indian Constitution includes the establishment and maintenance of dispensaries and hospitals, while medical education and drug administration are under the jurisdiction of the Union Government as per the Union List.

C