Instead of stating the definition of Mohr's circle directly, we can look at what the underlying stress-transformation equations actually produce when plotted, and use that to test each option.
For a 2D stress state with normal stresses \(\sigma_x, \sigma_y\) and shear stress \(\tau_{xy}\), the normal and shear stress on a plane inclined at angle \(\theta\) are given by
\[ \sigma_\theta = \frac{\sigma_x+\sigma_y}{2} + \frac{\sigma_x-\sigma_y}{2}\cos 2\theta + \tau_{xy}\sin 2\theta, \qquad \tau_\theta = -\frac{\sigma_x-\sigma_y}{2}\sin 2\theta + \tau_{xy}\cos 2\theta \]If \(\sigma_\theta\) is plotted on the horizontal axis and \(\tau_\theta\) on the vertical axis as \(\theta\) is varied, these two equations trace out a circle centered at \(\left(\dfrac{\sigma_x+\sigma_y}{2},0\right)\) with radius \(\sqrt{\left(\dfrac{\sigma_x-\sigma_y}{2}\right)^2+\tau_{xy}^2}\) — this circle is exactly Mohr's circle.
The two intercepts of the circle on the shear-free axis are, by construction, the principal stresses of the stress state.
Therefore, the correct answer is Principal stresses.