3

The correct answer is Option 3 -3 

The Permanent Settlement had come into operation in 1793. The East India Company had fixed the revenue that each zamindar had to pay. The estates of those who failed to pay were to be auctioned to recover the revenue. The contract was made with the zamindars of Bengal, in order to securing rights of property and permanently fixing the rates of revenue demand. Company intended to look forward to a regular flow of revenue, while entrepreneurs could feel sure of earning a profit from their investment. Officials hoped, it would lead to the emergence of a class of yeomen farmers and rich landowners who would have the capital and enterprise to improve agriculture. Nurtured by the British, this class would also be loyal to the Company. Contract was made through the auction and the estates were sold to the highest bidder. Charles Cornwallis was the Governor General of Bengal when the settlement was introduced.