The correct answer is option 2: inter-faith debates and discussions were held. Akbar`s Ibadat Khana, also known as the House of Worship, was a building in Fatehpur Sikri where Akbar, the Mughal emperor, invited scholars, philosophers, and religious leaders from different faiths to engage in dialogue and exchange ideas.

One of Akbar`s notable achievements was his attempt to promote religious harmony and tolerance among his subjects. He believed in the importance of understanding and respecting different religious beliefs. To facilitate this, he established the Ibadat Khana as a space where scholars from different religions could come together to discuss their respective beliefs and engage in debates to foster mutual understanding.

Akbar`s openness to interfaith dialogue was reflected in his principle of Sulh-i-kul, which promoted peace and tolerance among different religions. The discussions and debates held at the Ibadat Khana played a significant role in shaping Akbar`s religious policies and his pursuit of syncretism.

In summary, Akbar`s Ibadat Khana was a place where inter-faith debates and discussions were held, reflecting Akbar`s commitment to religious tolerance and his efforts to promote mutual understanding among diverse religious communities.