The correct option is C The Nayankara system was similar to feudalism in Europe.
The central administration in the Vijayanagara Kingdom was called the Nayankara system. In this system, the land was owned by the rulers who distributed it to his the generals. They were called Nayaks. They were responsible for collecting taxes from their tenants and maintaining an army to support their ruler. A portion of the revenue collected was given to their ruler. The rest was utilised for administration, military, and other charitable works. Adequate attention was paid for the development of agriculture. As this system flourished, the number of Nayaks were increased.