Which Schedule of the Indian Constitution demarcates the powers of the Union and the States, that is Union List, State List and Concurrent List?

Seventh Schedule

The correct answer is Option 3 - Seventh Schedule

The Seventh Schedule divides legislative powers between the Union and the States by listing subjects under three categories:
Union List (List I): Contains 100 subjects (originally 97) over which the Union Parliament has exclusive power to make laws. These include national defense, foreign affairs, currency, communication, railways, etc.
State List (List II): Includes 61 subjects (originally 66) for which the State Legislatures have the power to make laws. These encompass public order, police, agriculture, local government, etc.
Concurrent List (List III): Lists 52 subjects (originally 47) where both the Union Parliament and the State Legislatures can make laws. However, in case of a conflict, the Union law prevails. Examples include education, forests, electricity, etc.