In the context of state and administration in the Delhi Sultanate, the term 'muqti' means:

the holder of a land assignment called 'iqta'

The correct answer is Option 2- the holder of a land assignment called 'iqta'

In the context of state and administration in the Delhi Sultanate, the term "muqti" means the holder of a land assignment called "iqta".

An iqta was a land assignment granted by the sultan to an individual or group in exchange for military service or revenue collection. The holder of an iqta was known as a muqti.

The iqta system was a way for the sultan to reward his supporters and to maintain a loyal and effective military. It was also a way for the sultan to collect revenue from his vast empire.