Which of the following statements about the Princely states in British India is incorrect?

Manipur was the largest of all the princely states.

The correct answer is Option 2 - Manipur was the largest of all the princely states.

Manipur was not the largest of all the princely states, HYDERABAD was.

British India and the Princely states:

British India was divided into two entities: The British Indian Provinces (Punjab, United Province, Assam, etc.) and the Princely States (Hyderabad -largest princely state,  Kashmir, Bhopal, etc.).
The British Indian Provinces were directly governed by the British government.
The Princely States were territories ruled by princes and enjoyed a degree of control over their internal affairs.
The Princely States accepted the British crown's paramountcy or suzerainty, recognizing British supremacy. (OPTION 3)
The Princely States constituted approximately one-third of the land area of British India. (OPTION 4)
About one out of four Indians lived under the rule of the Princely States.
Prior to Independence, the British announced that with the end of their rule, the paramountcy of the British crown over the Princely States would also end.
This meant that the Princely States, numbering 565, would become legally independent (OPTION 1) and could choose to join India, and Pakistan, or remain independent.