The correct answer is D. All of the above.
Feudatories were smaller than princely states, had less autonomy than princely states, and were under the direct control of the Nizam.
Feudatories were smaller than princely states because they were not independent. They were subordinate to the Nizam, who was the ruler of Hyderabad State. The Nizam had the power to appoint and depose feudatory rulers, and he could also interfere in their internal affairs.
Feudatories had less autonomy than princely states because they were not allowed to have their own armies or to conduct their own foreign policy. They were also required to pay tribute to the Nizam.
Feudatories were under the direct control of the Nizam because they were his vassals. The Nizam had the power to appoint and depose feudatory rulers, and he could also interfere in their internal affairs.