The correct answer is option 3: "He was responsible for all incomes and expenditures, and held control over Khalisa, Jagir and Inara lands." This option states that the Mir Bakhshi was responsible for managing the financial aspects of the Mughal empire and controlling various types of lands.

Let`s analyze the other options to better understand why they are not the correct answer:

Option 1: "He made recommendations for appointment to Mansabs to the Emperor." This option suggests that the Mir Bakhshi was involved in the appointment process of Mansabs, which were military ranks in the Mughal empire. This aligns with one of the functions of the Mir Bakhshi.

Option 2: "He collected reports of intelligence and information agencies of the empire and presented them to the Emperor at the court." This option implies that the Mir Bakhshi was responsible for gathering intelligence reports and delivering them to the Emperor. This was another important function of the Mir Bakhshi.

Option 4: "He was responsible for the security of foreign travelers on the highways of the empire." This option states that the Mir Bakhshi had the duty of ensuring the safety of foreign travelers on the empire`s highways. This was also a function of the Mir Bakh