Where was the Safavid Empire located?

Iran

The correct answer is Option (2) → Iran

"The Mughal Empire was among the large territorial empires in Asia that had managed to consolidate power and resources during the sixteenth and seventeenth centuries. These empires were the Ming (China), Safavid (Iran) and Ottoman (Turkey). The political stability achieved by all these empires helped create vibrant networks of overland trade from China to the Mediterranean Sea. Voyages of discovery and the opening up of the New World resulted in a massive expansion of Asia’s (particularly India’s) trade with Europe. This resulted in a greater geographical diversity of India’s overseas trade as well as an  expansion in the commodity composition of this trade. An expanding trade brought in huge amounts of silver bullion into Asia to pay for goods procured from India, and a large part of that bullion gravitated towards India. This was good for India as it did not have natural resources of silver. As a result, the period between the sixteenth and eighteenth centuries was also marked by a remarkable stability in the availability of metal currency, particularly the silver rupya in India. This facilitated an unprecedented expansion of minting of coins and the circulation of money in the economy as well as the ability of the Mughal state to extract taxes and revenue in cash.".