Explanation

The Congress moderates demanded the repeal of the Arms Act and the Indianisation of the higher services, and — by the early 20th century — self-government on the colonial model with expanded councils. Testbook's paper-specific key for CDS (Held On: 8 Nov 2020), prepp and gkscientist all agree that extending the Permanent Settlement was not among their demands: the moderates' agrarian stance centred on reducing land revenue and protecting the peasantry, not extending the zamindari-based settlement. The correct answer is therefore the extension of the Permanent Settlement.