The correct answer is option 'B', which states that the States Reorganization Commission (SRC) was appointed in 1953.

Explanation:
The States Reorganization Commission (SRC) was a body appointed by the Government of India to recommend the reorganization of states on linguistic lines. The commission was set up in 1953 to address the demands for the creation of states based on linguistic and cultural identities.

1. Background:
- After India gained independence in 1947, there were numerous demands for the reorganization of states based on linguistic lines.
- The idea behind linguistic reorganization was to create states where people speaking the same language could have their own administration and cultural identity.

2. Appointment of the SRC:
- The SRC was appointed by the central government in 1953 under the chairmanship of Justice Fazal Ali.
- The other members of the commission were H.N. Kunzru, K.M. Panikkar, and V. Venkata Rao.

3. Mandate of the SRC:
- The SRC was tasked with examining the demand for the creation of new states or the reorganization of existing states on linguistic lines.
- It had to take into consideration various factors such as administrative feasibility, financial viability, and cultural homogeneity.

4. Recommendations of the SRC:
- After extensive consultations and research, the SRC submitted its report to the government in 1955.
- The commission recommended the reorganization of states in India on linguistic lines.
- It suggested the formation of new states and the redrawing of boundaries to accommodate linguistic and cultural identities.

5. Implementation of the SRC's recommendations:
- The recommendations of the SRC were not immediately implemented.
- However, they formed the basis for the reorganization of states in India in subsequent years.
- The States Reorganization Act was finally passed by the Indian Parliament in 1956, and it came into effect on November 1, 1956.

In conclusion, the States Reorganization Commission (SRC) was appointed in 1953 to address the demands for the reorganization of states on linguistic lines. The commission's recommendations formed the basis for the formation of new states and the redrawing of boundaries in India.