Correct answer: A. The Nizam wanted independence and the state lay inside India
Explanation: Direct answer: Option A, the Nizam wanted independence and Hyderabad lay inside India. At independence, princely states had to decide their relationship with India or Pakistan, while geography and public interest were important considerations. Hyderabad was a large, landlocked state surrounded by Indian territory. Its ruler, the Nizam, did not readily agree to accession to India and sought an independent position. Tensions, including the activities of the Razakars and conflict within the state, made the issue more difficult. Step by step: Hyderabad was not an overseas place; it was in the heart of India; its ruler resisted integration; the central government faced a serious security and political problem; after negotiations failed, military action known as Operation Polo in 1948 led to integration. Option A is correct. Option B is wrong because British India’s capital was not Hyderabad. Option C is wrong because Hyderabad was not a Portuguese island. Option D is wrong because it was a separate princely state, not part of Bengal. Exam cue: Hyderabad means Nizam, landlocked location and Operation Polo.