In which of the following year did India and Pakistan sign the Shimla Agreement?

The correct option is July 1972.

The Shimla Agreement is a historic peace treaty signed between India and Pakistan. Here is a step-by-step explanation of its context, signing, and significance:
1. The 1971 War Context: In December 1971, India and Pakistan fought a major war that resulted in the liberation of East Pakistan and the creation of the independent nation of Bangladesh. A ceasefire was declared, but a formal peace treaty was required to normalize relations and address outstanding issues like the repatriation of prisoners of war.
2. The Summit and Signing: To negotiate the peace terms, a summit was held in the hill station of Shimla, India. The treaty was signed on July 2, 1972, by the Prime Minister of India, Indira Gandhi, and the President of Pakistan, Zulfikar Ali Bhutto.
3. Key Outcomes: The agreement converted the 1971 ceasefire line into the Line of Control (LoC) between India and Pakistan in Jammu and Kashmir. Both countries also pledged to resolve their conflicts peacefully through bilateral negotiations rather than resorting to unilateral force or third-party mediation.