Explanation:

- Life Insurance Corporation of India (LIC) is an Indian state-owned insurance group and investment company headquartered in Mumbai.

- The Parliament of India passed the Life Insurance of India Act on 19 June 1956, and it started operating in September of that year.

- It consolidated the business of 245 private life insurers and other entities offering life insurance services.

- The nationalization of the life insurance business in India was a result of the Industrial Policy Resolution of 1956, which created a policy framework for extending state control.

- Option explanations:

- Option 1: it - Refers to LIC as a thing, suitable for organizations or inanimate objects.

- Option 2: which - Used to add non-restrictive relative clauses, not ideal at the start.

- Option 3: who - Refers to people, not suitable for organizations.

- Option 4: that - Used for restrictive relative clauses, not a fit here.

- Correct Answer: Option 1: it.