The correct answer is D.
The Nizam exerted control over feudatory states through appointing Diwans (administrators), military intervention, and control of revenue collection.
Diwans were appointed by the Nizam to administer the feudatory states. They were responsible for collecting revenue, maintaining law and order, and ensuring that the states remained loyal to the Nizam.
The Nizam also had the power to intervene militarily in the feudatory states if he felt that they were not being properly administered. This power was used sparingly, but it was a reminder to the feudatory rulers that they were ultimately subject to the Nizam’s authority.
Finally, the Nizam controlled the revenue collection in the feudatory states. This gave him a significant amount of economic power over the states and allowed him to reward or punish them as he saw fit.
In conclusion, the Nizam exerted control over feudatory states through a combination of appointing Diwans (administrators), military intervention, and control of revenue collection. This system of control allowed the Nizam to maintain his authority over the feudatory states and to ensure that they remained loyal to him.