A 'small fixed market' in 18th century was known as:

Ganj

The correct answer is Option (2) → Ganj

With political and commercial realignments in the eighteenth century, old towns went into decline and new towns developed. The gradual erosion of Mughal power led to the demise of towns associated with their rule. The Mughal capitals, Delhi and Agra, lost their political authority. The growth of new regional powers was reflected in the increasing importance of regional capitals – Lucknow, Hyderabad, Seringapatam, Poona (present-day Pune), Nagpur, Baroda (present- day Vadodara) and Tanjore (present-day Thanjavur). Traders, administrators, artisans and others migrated from the old Mughal centres to these new capitals in search of work and patronage. Continuous warfare between the new kingdoms meant that mercenaries too found ready employment there. Some local notables and officials associated with Mughal rule in North India also used this opportunity to create new urban settlements such as the qasbah and ganj. However, the effects of political decentralisation were uneven. In some places there was renewed economic activity, in other places war, plunder and political uncertainty led to economic decline

Qasbah is a small town in the countryside, often the seat of a local notable.

Ganj refers to a small fixed market.

Both qasbah and ganj dealt in cloth, fruit, vegetables and milk products. They provided for noble families and the army.