In the context of Indian History, the principal of Dyarchy (diarchy) refers to:
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Ans (b) Division of Subjects delegated to the provinces into two categories.
The Government of India Act of 1919 provided for dyarchy in provinces. The provincial subjects were divided into two parts:
1. Transferred subjects.
2. Reserved subjects.
(In detail: https://www.iassite.com/government-of-india-act-1919-montague-chelmsford-reforms-upsc)