When did the All-India Muslim League move a resolution at Lahore demanding autonomy of the Muslim-majority areas?

1940

The correct answer is Option (3) → 1940

In March 1940, the Muslim League passed a resolution demanding a measure of autonomy for the Muslim-majority areas of the subcontinent. The political landscape was now becoming complicated: it was no longer Indians versus the British; rather, it had become a threeway struggle between the Congress, the Muslim League, and the British. At this time Britain had an all-party government, whose Labour members were sympathetic to Indian aspirations, but whose Conservative Prime Minister, Winston Churchill, was a diehard imperialist who insisted that he had not been appointed the King’s First Minister in order to preside over the liquidation of the British Empire. In the spring of 1942, Churchill was persuaded to send one of his ministers, Sir Stafford Cripps, to India to try and forge a compromise with Gandhiji and the Congress.