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Option 1: USA - The United States has not recently decided to give a grant of US $ 1 billion for the reconstruction of the Nalanda University. This option is incorrect.
Option 2: China - China is the correct answer. They have recently decided to give a grant of US $ 1 billion for the reconstruction of the Nalanda University. This shows China`s interest and investment in the development and education sector in India.
Option 3: UK - The United Kingdom has not recently decided to give a grant of US $ 1 billion for the reconstruction of the Nalanda University. This option is incorrect.
Option 4: Japan - Japan has not recently decided to give a grant of US $ 1 billion for the reconstruction of the Nalanda University. This option is incorrect.
In conclusion, the correct answer is option 2, China. They have recently decided to give a grant of US $ 1 billion for the reconstruction of the Nalanda University.