Hint: Thomas Best was an English captain who had sunk four Portuguese ships. This impressed the Mughal Governor and therefore he gave them a treaty which was approved by emperor Jhangir who gave them trading rights.
Complete answer: The first English factory in India was established at Surat. However, after four centuries, these early footmarks of the British had been wiped out. There were no remains of a factory or a warehouse. According to historian HG Rawlinson, the factory in Surat was one of the best one. It was a two-storey building. The location was not far from the Surat fort. The fort was said to have been commissioned by Sultan Mahmud III. Surat was one of the most important ports for trading with the Mughals. This port was used by the textile manufacturers of Gujarat. However, the Portuguese were already trading with the Mughals and they were the master of the sea. It would take a lot of time for the British to take over. In 1612, the factory of the East India Company was established in Surat.
Option B is the right answer.
Note: In 1611, another factory was established by the East India Company in Masulipatam in Coromandel Coast.in 1626, it extended to the South in Armagaon and settled there because of the availability of cheap cloth. In the main production areas like Gujarat, Bengal and Coromandel, several weavers, washers were employed who worked on muslins, cotton and quilt.