Option 1 states that Lord Cornwallis is known for the permanent revenue settlement of Bengal. This refers to a significant financial reform that was implemented during his tenure as Governor-General of India. Under this settlement, a fixed amount of revenue was imposed on landowners or zamindars, who were responsible for collecting taxes from the peasants or ryots. This system aimed to establish a stable and transparent method of collecting revenue for the British East India Company. The permanent settlement of Bengal had long-lasting effects on the agrarian economy, as it locked the landowners in a privileged position and tied the peasants to the land. The other options, including attacking the caste system, land revenue settlement of the United States, and ryotwari settlement of Madras, are not accurate descriptions of Lord Cornwallis` accomplishments or actions.