The three lists of subjects provided by the 'Draft' Constitution—Union, State, and Concurrent—were part of the scheme of distribution of powers between the center and the states in India. Here's the reasoning behind this arrangement:

Union List:

• The Union List includes subjects on which only the central government has the authority to legislate. These are matters of national importance and concern.

State List:

• The State List comprises subjects on which only the state governments can legislate. These are matters of local or regional significance.

Concurrent List:

• The Concurrent List includes subjects on which both the central and state governments can legislate. However, in case of a conflict, the central law prevails.

So, the correct option is [4].