To find the probability that exactly 1 student is studying Music and exactly 2 are boys, we consider two scenarios:

1. 1 boy studying Music, 1 boy not studying Music, and 1 girl not studying Music.
2. 1 girl studying Music, 2 boys not studying Music.

For the first scenario:

\(P(B \text{ M}) \times P(B \text{ NM}) \times P(G \text{ NM}) = \frac{40}{160} \times \frac{56}{159} \times \frac{52}{158} \times 3! = 0.17387\)

For the second scenario:

\(P(G \text{ M}) \times P(B \text{ NM}) \times P(B \text{ NM}) = \frac{12}{160} \times \frac{56}{159} \times \frac{55}{158} \times \frac{3!}{2!} = 0.02759\)

Adding both probabilities gives:

\(P = 0.17387 + 0.02759 = 0.201\)