Concept:
Wheat is affected by several fungal diseases. Each disease has a specific causal pathogen.
Step 1: Match Loose smut.
Loose smut of wheat is caused by:
\[
\textit{Ustilago nuda tritici}
\]
So,
\[
A \rightarrow IV
\]
Step 2: Match Karnal bunt.
Karnal bunt of wheat is caused by:
\[
\textit{Tilletia indica}
\]
So,
\[
B \rightarrow III
\]
Step 3: Match Powdery mildew.
Powdery mildew of wheat is caused by:
\[
\textit{Erysiphe graminis tritici}
\]
So,
\[
C \rightarrow I
\]
Step 4: Match Leaf rust.
Leaf rust of wheat is caused by:
\[
\textit{Puccinia recondita tritici}
\]
So,
\[
D \rightarrow II
\]
Therefore, the correct matching is:
\[
A-IV,\ B-III,\ C-I,\ D-II
\]
\[
\therefore \text{Correct Answer is (B)}
\]