What was the life of the loan bonds in years signed between moneylenders and ryots as per the 'Limitation Law'?

Three years

The correct answer is Option 3 - Three years

In 1859 the British passed a Limitation Law that stated that the loan bonds signed between moneylenders and ryots would have validity for only three years. This law was meant to check the accumulation of interest over time. The moneylender, however, turned the law around, forcing the ryot to sign a new bond every three years. When a new bond was signed, the unpaid balance- that is the original loan and the accumulated interest- was entered as the principal on which a new set of interest charges was calculated.