The correct answer is: c) Princely states with internal autonomy under British suzerainty.
Feudatory states within Punjab were princely states with internal autonomy under British suzerainty. This means that they were not fully independent kingdoms, but they did have a certain amount of self-rule. The British government had control over their foreign affairs and defense, but the princely states were otherwise free to govern themselves.
Option a) is incorrect because the princely states were not fully independent kingdoms. They were under British suzerainty, which means that they were subordinate to the British government.
Option b) is incorrect because the princely states were not colonies directly ruled by the British. They were not part of the British Empire, and they had a certain amount of self-rule.
Option d) is incorrect because the princely states were not democratic republics established after independence. They were established before independence, and they were not democratic republics.