Step 1: Understanding the Permanent Settlement of 1793:
Introduced in Bengal by Governor-General Lord Cornwallis, the Permanent Settlement fixed the land revenue collection rights permanently for local zamindars.
Step 2: Structural Impact on Peasants:
Under this system, zamindars were recognized as the sole owners of the land. The actual cultivators of the soil (the peasants) were reduced to mere tent farmers, losing their traditiol, hereditary land-occupancy rights.
Step 3: Explaining the Exploitatiol Cycle:
Because the British state demanded exceptiolly high revenue, the zamindars passed this heavy burden down to the peasants. They charged high rents and evicted tents who failed to pay. To save their land and pay their rent during crop failures, peasants had to take out high-interest loans from local money-lenders (sahukars). This trapped them in a cycle of debt and exploitation.
Step 4: Elimiting the Incorrect Options:
Options (A), (B), and (D) are incorrect. The settlement strengthened colonial landlordism and discouraged agricultural modernization, leaving the peasantry impoverished.