The correct option is B Indians realized that the British government would not help the Indian production houses.
When the British government in India wanted to levy a three and a half per cent on Indian cloth because the British government imposed the same percentage of tax on British cloth coming to India, it became the bone of contention between Indians and the British government in India. The British government did this to protect the sale of British cloth in India. But, Indians realised that the British government would not help the Indian production houses and would protect only the interest of British cloth makers. Thus, they opposed the tax and demanded its removal.