On what ground did the British annex the kingdom of Awadh in 1856?

The correct answer is Option (2) → That it was being misgoverned

Awadh was taken over in 1856 on the ground of misgovernment: the British said they had to free the people from the ‘misrule’ of the Nawab. It was not annexed under the Doctrine of Lapse, since the Nawab was alive.