What was "Raiyatwari" system?

The correct option is: The cultivators paid agricultural tax directly to the British government.

Understanding the Raiyatwari System:
The Raiyatwari (also spelled Ryotwari) system was one of the primary land revenue systems introduced by the British administration in India. Devised by Captain Alexander Read and Sir Thomas Munro in the late 18th century, it was widely implemented in parts of Southern and Western India, including Madras, Bombay, and parts of Assam and Coorg.

How it Worked:
1. Direct Contract with Peasants: The word "Raiyat" (or Ryot) refers to an individual peasant cultivator. In this system, the British government bypassed local landlords and made revenue settlements directly with these individual cultivators.
2. Ownership and Security: Cultivators were recognized as the legal owners of the land. They had the freedom to sell, transfer, or lease their land, provided they paid the designated land revenue to the state.
3. Absence of Intermediaries: Unlike the Zamindari system (Permanent Settlement) active in Bengal where Zamindars (landlords) acted as middlemen, the Raiyatwari system established a direct line of tax payment from the peasant to the British treasury.

Thus, the defining characteristic of the Raiyatwari system was that the cultivators paid agricultural taxes directly to the British government without any intermediaries.