How many states and union territories were formed after passing of the States Reorganisation Act in 1956?

14 states and 6 union territories.

The correct answer is Option 2 : 14 states and 6 union territories.

Reorganisation of States in India:

The States Reorganization Commission was established in 1953 to study linguistic and cultural divisions and recommend state boundary changes.
The Commission concluded that state boundaries should align with linguistic boundaries, acknowledging India's linguistic diversity and respecting regional identities.
Based on the Commission's recommendations, the States Reorganization Act was passed in 1956, providing a constitutional basis for the creation of linguistic states.
The implementation of the act led to the formation of 14 new states and 6 union territories, promoting better governance, administration, and representation of diverse linguistic and cultural groups.