The correct option is C Settlement of refugees.
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After the Mountbatten Plan and Indian Independence Act of 1947, two separate independent countries, India and Pakistan, came into existence. Problem of refugee-settlement arose due to migration of people to and from the countries. Since people had left their properties and migrated, disputes over assets came to light. The reorganisation of military forces, debts and credits, public services, and the arrangement of civil servants and administrative staff had to be solved.