Each option pertains to historical events or contributions made by a particular figure in Indian history.

Option 1 claims that Ali Mardan Khan introduced the system of revenue farming in Bengal. This is not true, as it was actually Murshid Quli Khan who began the practice of revenue farming in Bengal. Hence, this is the correct answer as it is the incorrect statement.

Option 2 states that Maharaja Ranjit Singh set up modern foundries to manufacture cannons at Lahore. This is true, Ranjit Singh modernised his armed forces, and part of this initiative included the development of foundries for cannon production.

Option 3 is about Sawai Jai Singh of Amber translating Euclid`s `Elements of Geometry` into Sanskrit. This is accurate. Sawai Jai Singh was a noted astronomer and mathematician, and translations such as this were part of his efforts to modernise Indian scientific thought.

Option 4 explains that Sultan Tipu of Mysore funded the construction of the idol of Goddess Sarda in the Shringeri temple, which is correct. While Sultan Tipu is known for his battles against British imperialism, he also engaged in acts of religious tolerance, as this instance demonstrates.