The correct option is B The ULFA demanded an independent state of Khalistan.
The United Liberation Front of Assam (ULFA) is a designated revolutionary rebel organisation (separatist group) operating in the Indian state of Assam. The ULFA was founded on 7 April 1979 in Sivasagar, Assam. It seeks to establish an independent state of Assam with armed struggle in the Assam conflict. The Government of India banned the organisation in 1990 citing it as a terrorist organisation. The Khalistan movement demanded an independent Sikh state.