Correct Answer:
B. 1916
The Indian National Congress first recognized the All-India Muslim League as the political party representing Muslims in 1916. This recognition occurred with the signing of the Lucknow Pact, a historic agreement where both parties presented joint demands for constitutional reforms to the British government. This period marked a rare instance of Hindu-Muslim unity in the struggle for independence. Option A (1906) was the year the Muslim League was founded. Options C (1930) and D (1940) represent later periods when relations between the two parties had significantly deteriorated, leading to increased communal tensions.