Consider the following: 1. Demographic performance 2. Forest and ecology 3. Governance reforms 4. Stable government 5. Tax and fiscal efforts. For the horizontal tax devolution, the Fifteenth Finance Commission used how many of the above as criteria other than population, area and income distance?

Re-examination: The 15th Finance Commission used these horizontal devolution criteria: Income distance, Area, Population (2011), Demographic performance, Forest & ecology, and Tax effort.

Now evaluate the listed items other than population, area and income distance:

1. Demographic performance — Correct. It was a 15th FC criterion.
2. Forest and ecology — Correct. It was included with a specific weight.
3. Governance reforms — Incorrect. Not a horizontal devolution criterion.
4. Stable government — Incorrect. No such criterion was used.
5. Tax and fiscal efforts — Correct in substance. The Commission used Tax effort; the option phrases it as "tax and fiscal efforts," but this clearly points to that criterion.

Hence, 3 items are correct: 1, 2 and 5. Therefore the answer is (b) Only three.