In order to make Islam appear more rational, Sir Syed Ahmed Khan reinterpreted certain controversial problems of Islam. Let`s dissect each option to better understand the answer.

Option 1 suggests that polygamy was allowed but only in rare circumstances. Polygamy is a practice where a man can have multiple wives. While it is true that polygamy is allowed in Islam, Sir Syed Ahmed Khan did not reinterpret this practice. Therefore, option 1 is not the answer.

Option 2 states that Holy War (Jehad) was not a Muslim concept. This statement is incorrect. Jihad is an important concept in Islam, and Sir Syed Ahmed Khan did not reinterpret or deny its existence. Thus, option 2 is the correct answer.

Option 3 suggests that Islam had laid down liberal conditions for the treatment of slaves that altered the character of slavery. This statement is true, but Sir Syed Ahmed Khan did not reinterpret it. Hence, option 3 is not the answer.

Option 4 claims that only usury, not every type of interest, was prohibited in pre-Islamic times. This statement is also incorrect. Islam prohibits all forms of interest, not just usury. Therefore, option 4 is not the answer.

In conclusion, the