The correct answer is option 2: Pali. The Majjhima Nikaya is one of the five collections of the Buddhist scriptures known as the Nikayas. It is a significant text in Theravada Buddhism and contains the middle-length discourses of the Buddha.

To further understand the options, let`s dissect them:

- Option 1: Sanskrit. While Sanskrit is an ancient Indian language and has been used in various religious texts, the Majjhima Nikaya is not written in Sanskrit. Sanskrit was used in Vedic literature and is the language of many Hindu scriptures.

- Option 3: Prakrit. Prakrit is a group of ancient Indian languages that developed from Sanskrit. While Prakrit was used in various ancient texts, it is not the language of the Majjhima Nikaya.

- Option 4: Telugu. Telugu is a modern Indian language and not related to the ancient Buddhist texts. The Majjhima Nikaya is not written in Telugu.

In conclusion, the Majjhima Nikaya is a Buddhist text written in Pali, making option 2 the correct answer.