In July 1985, the Punjab Accord to bring normalcy to Punjab was signed between:

Rajiv Gandhi and Harchand Singh Longowal

The correct answer is Option 3 - Rajiv Gandhi and Harchand Singh Longowal.

After coming to power following the election in 1984, the new Prime Minister Rajiv Gandhi initiated a dialogue with moderate Akali leaders. In July 1985, he reached an agreement with Harchand Singh Longowal, then the President of the Akali Dal. This agreement, known as the Rajiv Gandhi - Longowal Accord or the Punjab Accord, was a step towards bringing normalcy to Punjab. It was agreed that Chandigarh would be transferred to Punjab, a separate commission would be appointed to resolve the border dispute between Punjab and Haryana, and a tribunal would be set up to decide the sharing of Ravi-Beas river water among Punjab, Haryana and Rajasthan. The agreement also provided for compensation to and better treatment of those affected by the militancy in Punjab and the withdrawal of the application of the Armed Forces Special Powers Act in Punjab. However, peace did not come easily or immediately. The cycle of violence continued nearly for a decade.  Militancy and counter-insurgency violence led to excesses by the police and violations of human rights. Politically, it led to the fragmentation of the Akali Dal. The central government had to impose the President’s rule in the State and the normal electoral and political process was suspended. It was not easy to restore the political process in an atmosphere of suspicion and violence. When elections were held in Punjab in 1992, only 24 per cent of the electors tuned out to vote.