The second chapter of Anglo-Afghan relations opens with the Governor-Generalship of Lord Ellenborough and ends with the Viceroyalty of Lord Northbrook. As opposed to the policy of misdirected war and activity, it has been called the policy of Masterly Inactivity.  This policy of Masterly Inactivity was a direct outcome and a reaction to the disasters of the first Afghan war. The policy is very much associated with the name of John Lawrence because it was during his viceroyalty that the time came for its application and the outlines of this policy came to be sharply defined.  The term 'Masterly Inactivity' was coined by J.W.S. Wyllie in an article which he contributed on Lawrence's Afghan policy to the January 1867 issue of The Edinburgh Review. Since then the phrase has been used to support or criticise the Afghan policy of different Governors-General.  The phrase 'Masterly Inactivity' does not correctly explain the Afghan policy of Lawrence. His policy was not based on indifference towards Afghan affairs and ignorance about Russian ambitions in Central Asia, but was based on the principle of non-interference in the internal affairs of Afghanistan and watchfulness towards happenings in that corner of the world.  Lawrence's policy was an outcome of practical common sense and intimate knowledge of the frontier problem.
John Lawrence had been the Commissioner of the Punjab till 1859 and had first hand knowledge about the arid terrain of Afghanistan and the Afghan passion for independence. As such, Lawrence was not likely to be swayed by passing sentiments or influenced by military adventurers.  He opposed the Forward Policy of occupying military stations like Quetta or stationing of a British Resident at Kabul or supporting one or the other pretender to the throne of Kabul for, as he argued, such a policy would mean going half way to meet the proposed danger; would incur the displeasure and even enmity of brave and patriotic Afghans; draw an English army away from the natural frontier of an almost impassable river (the Indus) and mountains to a frontier surrounded by enemies on all sides besides involving the Government of India in huge military expenditure. Lawrence, therefore, decided upon a policy of non-intervention into the affairs of Afghanistan.
Hence option (a) is the correct answer.