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The Mughal emperor who started a new religion, Din-e-ilahi, was
A. Babar
B. Akbar
C. Sher Shah
D. Jijabai

Answer
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Hint: Din-I-Ilahi was the concept of an ethical system which prohibits sins such as sensuality, lust, pride, prudence and abstinence etc. In Din-I-Ilahi there were no secret scriptures or priestly hierarchy; instead, it borrowed light such as sun and fire as an object of divine worship from Zoroastrianism.

Complete answer: Din-I-ilahi was started by Mughal emperor Akbar. It was an ethical system for a new religion started by him. Members of this religion were handpicked by Akbar himself. Akbar considered himself as a reformer of Islam and introduced some suggestions in Islam. His religion Din-I-Ilahi was regarded as a Muslim innovation however, the influence of this new religion remained limited and confined and triggered a strong orthodox reaction in Indian Islam.
Now we will talk about the other three options and for what they are famous for:
-Babar was the pioneer of the Mughal empire and belonged to the Sunni sect of Islam. He had complete faith in God and was liberal to Shias. He even entered into a treaty with the Shia ruler of Persia. In India, Babar executed religious tolerance towards Hindus. During his reign he abolished am from Muslims and constructed a mosque at Ayodhya.
-Sher Shah was a Sunni Muslim and follow the principles of Islam in his personal life. During his reign, he was a tolerant ruler and particularly tolerant of Hindus. During his reign, Hindus received due recognition in the state.
-Jijabai was the mother of the famous ruler Chhatrapati Shivaji. She was a religiously inclined woman. When Shivaji was born Jijabai taught him the values of Mahabharata and Ramayana to make him patriotic and pious. She sowed the seeds of devotion to the nation and Dharma.
Therefore, option B is correct.

Note: The new religion was started by Akbar in the late 16th century AD. Under Din-I-Ilahi the soul purifies itself through longing for god. Celibacy was acceptable like catholicism and slaughter of animals were forbidden. However, the movement remained confined to Akbar as his successors were not tolerant and liberal like Akbar.