In Sanskrit texts and inscriptions, the term 'Vanik' refers to:

Merchants

The correct answer is Option (2) → Merchants

Sanskrit texts and inscriptions used the term vanik to designate merchants. While trade was defined as an occupation for Vaishyas in the Shastras, a more complex situation is evident in plays such as the Mrichchhakatika written by Shudraka (c. fourth century CE), Here, the hero Charudatta was described as both a Brahmana and a sarthavaha or merchant And a fifth-century inscription describes two brothers who made a donation for the construction of a temple as kshatriya-vaniks