Option 1: Bahadur Shah was not the last ruler of the Lodis. The Lodi dynasty ended with the defeat of Ibrahim Lodi by Babur in the First Battle of Panipat in 1526.

Option 2: Bahadur Shah was not the successor of Sher Shah Suri. After Sher Shah`s death, his son Islam Shah became the ruler of the Sur dynasty.

Option 3: This is the correct answer. Bahadur Shah was indeed the last Mughal ruler. He ascended the throne in 1707 and his reign marked the decline of the Mughal Empire.

Option 4: Bahadur Shah was not the successor of Shivaji, who was the founder of the Maratha Empire. Bahadur Shah ruled during the decline of the Mughal Empire and the rise of regional powers like the Marathas.