Shuddhi Movement was initiated by:

Arya Samaj

The correct answer is Option (2) → Arya Samaj

The Shuddhi Movement was a movement by Arya Samaj to bring back to the Hindu fold (shuddhi ) those who had recently converted to Islam.

During the 1920s and early 1930s, tension grew around a number of issues. Muslims were angered by “music-before-mosque”,  by the cow protection movement, and by the efforts of the Arya Samaj to bring back to the Hindu fold (shuddhi) those who had recently converted to Islam.