The system where the 'actual cultivators' rather than the zamindars were responsible for paying the tax was called-

Raiyatwari

The correct answer is option 3: Raiyatwari

Many districts of colonial India were administered through the zamindari system. In other areas that were under direct British rule had what was called the raiyatwari system of land settlement (raiyat means cultivator in Telugu). In this system, the ‘actual cultivators’ (who were themselves often landlords and not cultivators) rather than the zamindars were responsible for paying the tax. Because the colonial government dealt directly with the farmers or landlords, rather than through the overlords, the burden of taxation was less and cultivators had more incentive to invest in agriculture. As a result, these areas became relatively more productive and prosperous.