The correct answer is option 'B' - Ahmad Shah.

Explanation:
Ahmad Shah was one of the later Mughal emperors who appointed his 2-1/2 years old son as the Governor of Punjab and a one-year-old baby as the deputy under him.

Here is a detailed explanation of the context and significance of this appointment:

Context:
- The Mughal Empire was in a state of decline during the later years, with weak rulers and growing regional powers.
- Ahmad Shah ascended the Mughal throne in 1748 at the age of 22 after the death of his father Muhammad Shah.
- His reign was marked by political instability, weak central authority, and the encroachment of regional powers.

Appointment of his young son as Governor of Punjab:
- Ahmad Shah's decision to appoint his 2-1/2 years old son as the Governor of Punjab reflects the weakened state of the Mughal Empire.
- It highlights the lack of capable and experienced administrators within the empire.
- This appointment can be seen as a desperate attempt to maintain control over the Punjab region, which was strategically important and faced threats from regional powers.

Appointment of a one-year-old baby as the deputy:
- The appointment of a one-year-old baby as the deputy under his young son further emphasizes the lack of capable officials within the empire.
- It indicates a disregard for governance and an inability to make rational decisions.
- This appointment may also suggest a power struggle within the Mughal court, with different factions vying for influence and control.

Significance:
- Ahmad Shah's appointment of his young son and a baby as governors highlights the weakness and decline of the Mughal Empire.
- It showcases the lack of capable leadership and administrative skills within the empire.
- This appointment also symbolizes the fragmentation and disintegration of central authority, with regional powers gaining more control and influence.

In conclusion, Ahmad Shah's decision to appoint his 2-1/2 years old son as the Governor of Punjab and a one-year-old baby as the deputy reflects the weakened state of the Mughal Empire and the lack of capable administrators. This appointment highlights the decline, fragmentation, and disintegration of the empire during the later years.