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The correct answer is option 4, which means that all the statements given are correct.
Statement 1 is true because Vijayanagar Empire was known for its flourishing markets that traded in various commodities such as spices, textiles, and precious stones. These markets played a significant role in the economic prosperity of the empire.
Statement 2 is true as well. During Krishnadeva Raya`s rule, the Vijayanagar Empire faced internal conflicts and strained relations within the imperial structure. These strains were primarily caused by power struggles and rivalries among the nobles and courtiers.
Statement 3 is also correct. The amara-nayakas were military commanders who were appointed by the Rayas (rulers of Vijayanagar) to govern specific territories. They played a crucial role in maintaining law and order and defending the empire`s borders.
Therefore, option 4 is the correct answer since all the statements given are true.