The Permanent Settlement was an agreement made in 1793 between the British East India Company and the zamindars of Bengal. Under this settlement, the zamindars were recognized as the owners of the land and were responsible for collecting rent from the peasants. The answer to the question is option 'C', which means that the rajas and taluqdars were recognized as zamindars under the Permanent Settlement.

Who are Rajas and Taluqdars?

- Rajas: They were the hereditary rulers of princely states in India. They held a high social and political status in the society.

- Taluqdars: They were the large landowners who held estates in the Mughal Empire. They were considered as the intermediaries between the Mughal rulers and the peasants.

Why were they recognized as zamindars?

- The British East India Company wanted to collect revenue from the land in Bengal, but they did not have a proper system for it. So, they decided to introduce the Permanent Settlement, which aimed to fix the revenue collection system.

- The British officials thought that the zamindars, who were the traditional landowners, would be better suited to collect revenue from the peasants.

- The rajas and taluqdars were the most powerful zamindars in Bengal, and they had the resources to pay the fixed revenue to the British. So, they were recognized as zamindars under the Permanent Settlement.

Conclusion:

The Permanent Settlement was a significant agreement in the history of India, which had far-reaching consequences. The recognition of rajas and taluqdars as zamindars played a crucial role in the implementation of the settlement. However, the settlement had many flaws, which led to the exploitation of peasants and the decline of agriculture in Bengal.