The correct answer is option 'C' - Nadir Shah and Muhammad Shah 'Rangeela'.

The Battle of Karnal, also known as the Battle of Karnal Fort, took place on 13th February 1739 near Karnal, Haryana, in present-day India. It was fought between the Persian Empire under Nadir Shah and the Mughal Empire under Muhammad Shah 'Rangeela'.

Background:
- The Mughal Empire was in a state of decline during the 18th century, with weak and ineffective rulers, internal conflicts, and declining military strength.
- Nadir Shah, the powerful ruler of Persia (modern-day Iran), had launched a military campaign to expand his empire and gain control over the rich provinces of the Mughal Empire.

Causes of the Battle:
- Nadir Shah demanded the Mughal Emperor Muhammad Shah to hand over the famous Koh-i-Noor diamond and the Peacock Throne, both of which were symbols of Mughal wealth and prestige.
- Muhammad Shah, fearing the consequences of refusal, agreed to the demands but failed to deliver on his promises.
- Nadir Shah saw this as an opportunity to invade the Mughal Empire and seize its riches.

Key events of the Battle:
- Nadir Shah's invasion force consisted of around 55,000 soldiers, including cavalry, infantry, and artillery.
- Muhammad Shah, on the other hand, had a much smaller army of around 30,000 soldiers.
- The battle began with an initial Mughal charge, but the Persian forces, well-equipped with firearms and artillery, repelled the attack.
- The Mughal army suffered heavy casualties, and their ranks began to collapse.
- Muhammad Shah, realizing the impending defeat, fled the battlefield, leaving behind his soldiers.
- The Persian forces captured the Mughal camp and looted it, seizing immense wealth, including the Koh-i-Noor diamond and the Peacock Throne.

Aftermath:
- The Battle of Karnal was a decisive victory for Nadir Shah and a significant blow to the Mughal Empire.
- Nadir Shah went on to sack and plunder Delhi, marking the decline and humiliation of the once-mighty Mughal Empire.
- The looting and destruction caused by Nadir Shah led to immense loss of wealth and prestige for the Mughals.
- This battle is considered a turning point in the history of the Mughal Empire and further weakened its position in India.

Overall, the Battle of Karnal was a significant event that showcased the military superiority of Nadir Shah's Persian Empire over the declining Mughal Empire.