The 'Mahajans' were collectively represented by the chief of the merchant community known as __________.

Nagarsheth

The correct answer is Option (2) → Nagarsheth

The term "Nagarsheth" is a title given to the chief of the merchant community in Urban areas in India.

In Medieval India merchants often had strong community or kin ties, and were organised into their own caste-cumoccupational bodies. In western India, these groups were called mahajans, and their chief, the sheth. In urban centres such as Ahmedabad the mahajans were collectively represented by the chief of the merchant community who was called the nagarsheth.