The late 19th century marked a significant period for India as it became one of the largest producers and exporters of certain commodities. Option 1 states that India was exporting cotton yarn and wheat during this time. Cotton was a major cash crop in India and the spinning of cotton yarn was a significant industry. Wheat, on the other hand, was a staple food crop in India, and surplus production allowed for exportation.

Option 2 suggests that India was exporting sugar and rice during this period. While India is known for its production of sugar and rice, it is important to note that option 1, which includes cotton yarn and wheat, is a more accurate representation of India`s primary exports during the late 19th century.

Option 3 suggests that India was exporting sugar and alcohol. While India did produce sugar, there is no substantial evidence to support the claim that alcohol was a major export during this time.

Option 4 suggests that India was exporting iron and steel. This is not accurate as India did not have a significant iron and steel industry during the late 19th century.

In conclusion, option 1, cotton yarn and wheat, is the correct answer as it aligns with India`s role as a major producer and exporter during the late 19th century