The correct option is C Both statements are true.
The naval superiority of the Europeans in sea reduced the space available for Indian merchants to operate freely. Local traders offered stiff competition to European traders. But that changed after Europeans found the sea route to India. This way, Europeans tried hard to eliminate competition from other traders. They fought among themselves to gain supremacy of Indian trade. This battle for supremacy was finally won by the British. In the year 1565, the combined armies of Berar, Bijapur, Golconda, Bidar and Ahmednagar attacked the Vijayanagar empire. The capital city was burnt down and ransacked. Ruins of Hampi remind us about its past glory and its violent fall.