The correct answer is (b), Section 406 of the Indian Penal Code.
Section 406 of the Indian Penal Code deals with criminal breach of trust. It states that whoever dishonestly misappropriates or converts to his own use any property entrusted to him by another or fraudulently converts to his own use any property which he has authority to sell, convert, or dispose of for the benefit of another, shall be punished with imprisonment of either description for a term which may extend to three years, or with fine, or with both.
In the case of dishonest misappropriation of property possessed by deceased person at the time of his death, the property would be considered to have been entrusted to the person who misappropriates it by the deceased person. Therefore, the person who misappropriates the property would be guilty of criminal breach of trust under Section 406 of the Indian Penal Code.
The other options are incorrect because they do not deal with the specific offence of dishonest misappropriation of property possessed by deceased person at the time of his death.
(a) Section 404 of the Indian Penal Code deals with criminal breach of trust by public servant, or by banker, merchant, or agent.
(c) Section 407 of the Indian Penal Code deals with criminal breach of trust by a clerk or servant.
(d) Section 409 of the Indian Penal Code deals with criminal breach of trust by a public servant, or by banker, merchant, or agent, entrusted with property in the course of his employment as such public servant, banker, merchant, or agent.