The correct answer is C. Both 1 and 2.
The Parliament of India has the power to make laws on any subject, except for those that are specifically reserved for the State Legislatures. The subjects that are enumerated in the Concurrent List are those on which both the Parliament and the State Legislatures can make laws. However, if the Parliament makes a law on a subject that is also included in the Concurrent List, then the law made by the Parliament will prevail over the law made by the State Legislature.
The Parliament also has the power to make laws touching the jurisdiction and power of all courts. This means that the Parliament can make laws that change the way that courts work, or that create new courts. For example, the Parliament can pass a law that changes the way that judges are appointed, or that creates a new court to deal with a particular type of case.
Therefore, both statements given above are correct.