Step 1: Understanding the Question:
The question asks about the year India recorded its last natural case of smallpox, before the disease was declared eradicated from the country.
Step 2: Key Formula or Approach:
Smallpox eradication in India followed an intensive surveillance and containment strategy under the WHO Smallpox Eradication Programme, using case detection and ring vaccination around every reported case.
Step 3: Detailed Explanation:
India launched the Intensified Smallpox Eradication Programme in 1973, using house to house search and containment of every outbreak.
The last case of smallpox in India was reported in May 1975, in a girl named Saiban Bibi from Bihar.
After this case, active surveillance for two more years found no fresh cases, and India was certified smallpox free in 1977.
The years 1965, 1986 and 1995 do not match this recorded history, so options (A), (C) and (D) are wrong.
Step 4: Final Answer:
The last case of smallpox in India occurred in 1975.
\[ \boxed{1975} \]