Correct option is B
Information Booster:
Statement A - The Chamber of Princes was established in 1918." Incorrect.The Chamber of Princes (Narendra Mandal) was formally inaugurated on 8 February 1921, not in 1918.It was created by the British to provide a platform for princely rulers to voice their opinions and act as an advisory body.
Statement B - ‘Butler Committee’ was formed in 1927 for inquiring into relationship between the Indian princely states and the paramount power of British."Correct.The Butler Committee (named after Harcourt Butler) was indeed formed in 1927 to examine the nature of the relationship between the British Crown (paramount power) and the Indian princely states.