With the rise of British colonialism, feudatory states gradually:

The correct answer is: d) All of the above

With the rise of British colonialism, feudatory states gradually lost their autonomy, became princely states, and were annexed.

• Lost their autonomy: Feudatory states were originally independent kingdoms or principalities that owed allegiance to a larger empire. However, as the British Empire expanded, it began to exert more and more control over these states. This led to a gradual loss of autonomy for the feudatory states, as they were forced to accept British rule.
• Became princely states: Some feudatory states were able to retain a degree of autonomy by becoming princely states. These were states that were ruled by a prince or princess who owed allegiance to the British Crown. However, even princely states were subject to British control, and their rulers were often appointed by the British government.
• Were annexed: Some feudatory states were simply annexed by the British Empire. This meant that they were absorbed into the British Empire and ceased to exist as independent entities.

The loss of autonomy, the creation of princely states, and the annexation of feudatory states were all part of the process of British colonialism. This process had a profound impact on the Indian subcontinent, and it continues to be felt today.