The correct option is C Malik Bhago made his living by cheating people.
While Malik Bhago, the town chief lived in a big house and offered a huge welcome feast for Guruji, the latter did not accept his invitation. Instead, he chose to stay at Bhai Lalo, a poor carpenter's house because Malik Bhago's earned his living by cheating and draining the poor, whereas Bhai Lalo earned money through hard and honest work.