The answer suggests that in the 19th century, Indian art was not being produced for the open market. This can be examined by summarizing each option-

1. Art was being produced for the open market - This is the correct answer. In the 19th century, many artists worked under the patronage system. Their work was not intended for an open market but was commissioned by specific patrons, often being the royalty or the rich.

2. The artist (Shilpi) became distinct from the artisan (Karigar) - This statement expresses the differentiation between the roles of artists and skilled labourers. While the former were revered for their creativity, the latter were known for their technical expertise.

3. The technique of oil painting was developed - Oil painting was indeed introduced to Indian artists in this time period due to the influence of European techniques, altering the traditional methods of art creation.

4. The distinction between elite and popular art widened - This refers to the perceptible disparity between art types. Elite art often had a higher aesthetic value and was accessible only to the upper classes, whereas popular art was more folk-based and uniformly acceptable.

Overall, the correct answer is that the art was not being widely sold in open markets during the 19th century.