Concept:
Modern Buddhist scholarship in India witnessed extensive efforts to translate Pali Buddhist literature into Hindi. This movement helped reconnect Indian readers with the original teachings of Buddhism.
Step 1: Contribution of Rāhul Sāṅkṛtyāyana.
A. Rāhul Sāṅkṛtyāyana was one of the greatest scholars of Buddhist studies in modern India. He translated important Pali texts and introduced Buddhist philosophy to Hindi readers through accessible language.
Step 2: Contribution of Jagadīśa Kāśyapa.
E. Jagadīśa Kāśyapa played a major role in editing and translating Pali literature. As director of Nava Nalanda Mahavihara, he promoted systematic publication of Buddhist texts.
Step 3: Rejecting the remaining names.
• B. Padmakāra Gupta --- Not known primarily for Hindi translations of Pali texts.
• C. Nāgārjuna --- Ancient Mahāyāna philosopher, not a modern Hindi translator.
• D. Mahātma Gāndhī --- Influenced by Buddhist ethics but not a translator of Pali literature.
Step 4: Final Conclusion.
The major Hindi translators of Pali literature among the options are:
\[
\boxed{A \text{ and } E}
\]
Hence, Option (2) is correct.