The correct option is D The two nations signed an agreement on 7 September, 1993, to resolve border issues through peaceful and friendly consultations.
The Panchsheel Agreement signed on 28 April, 1954, formed the foundation of Indo-Chinese relations. It was also called 'the Five principles of peaceful coexistence'. Despite the principles of non-aggression present in the Panchsheel Agreement, China occupied Tibet and claimed Aksai-Chin in the Sino-Indian war. Due to lack of military preparedness, India lost the Sino-Indian war. The Indo-China border remains undefined till date leading to recurring border standoffs and conflicts. Relations with China remains strained and has deteriorated in the recent past.