Option 1: Pitts India Act - This option is related to a different aspect of British rule in India. The Pitts India Act of 1784 was an act of the British Parliament that established the Board of Control to oversee the British East India Company`s operations in India. It aimed at improving governance and reorganizing the structure of the company.

Option 2: Mahalwari Settlement - This option is the correct answer. The Mahalwari Settlement was a land revenue policy introduced by the English East India Company. It was implemented in parts of British-controlled India during the early 19th century. Under this system, the land revenue was directly collected from individual landowners, who were organized into villages or mahals. This policy aimed at increasing the revenue collection efficiency and establishing direct contact with the landowners.

Option 3: Regulating Act - The Regulating Act of 1773 was another significant legislation by the British Parliament regarding the governance of British India. It aimed at bringing some control over the East India Company and making improvements in the administration of British territories in India.

Option 4: Subsidiary Alliance - The Subsidiary Alliance was a policy introduced by Lord Wellesley, the Governor-General of India, in the early