Step 1: Analyzing the Early Era of Congress Dominance (1952--1967):
During the first three general elections (1952, 1957, and 1962), the Indian National Congress maintained absolute political hegemony at both the Central and State levels. Under the charismatic leadership of Jawaharlal Nehru, the party regularly secured over $70\%$ of the seats in the Lok Sabha and controlled almost all state legislative assemblies.
Step 2: Identifying the Watershed Moment of 1967:
The Fourth General Elections held in February 1967 represented a structural turning point in Indian electoral history. The country was reeling under the weight of successive leadership successions (following the sudden demises of Prime Minister Nehru in 1964 and Prime Minister Shastri in 1966), acute economic distress, failed monsoons, and food shortages. Under the strategy of “Non-Congressism” engineered by socialist leader Ram Manohar Lohia, opposition parties united to harness public discontent.
Step 3: Detailing the State-Level Losses:
The electoral outcome was labeled a “political earthquake.” While the Congress managed to scrape together a narrow majority in the Lok Sabha with a severely reduced seat count, it completely lost power in nine key states across northern, eastern, and southern India: Punjab, Haryana, Uttar Pradesh, Madhya Pradesh, Bihar, West Bengal, Orissa, Madras (Tamil Nadu), and Kerala. In Madras, the regional Dravida Munnetra Kazhagam (DMK) won a clear single-party majority, marking the first time a non-Congress party formed a state government independently. Thus, Option (B) is correct.