During the period of later Mughals, the decline in trade and commerce was mainly due to the abuse of trade licenses by European companies.

Option 1 suggests that the deterioration in the law and order situation was the main reason for the decline in trade and commerce. However, there is no specific evidence to support this claim. While the law and order situation may have contributed to some extent, it is not the primary reason for the decline.

Option 2 suggests that the closure of old trade routes was the main reason for the decline in trade and commerce. While the closure of trade routes may have had an impact, it is not the main reason. The decline in trade and commerce was more related to the exploitation of trade licenses.

Option 4 suggests that the poverty of the Mughal nobility was the main reason for the decline. While the poverty of the nobility may have had some impact, it is not the primary reason. The abuse of trade licenses by European companies had a more significant role in the decline.

Option 3, the correct answer, states that the decline was mainly due to the abuse of trade licenses by European companies. This means that these companies used their licenses to exploit the trade and commerce system for their own benefit, resulting in a decline in