Explanation:

The Mughal Empire held sway over a large part of India for nearly three centuries, but a drastic decline in its power and prestige came about by the first half of the eighteenth century.

• Not only did the political boundaries of the Empire shrink, but the decline also saw the collapse of the administrative structure so assiduously built by rulers like Akbar and Shah Jahan.
• Various factors leading to its decline can be attributed to reign of Aurangzeb:

Deccan Policy

• It refers to the extended period of conflict and diplomacy between the Mughals and the states of Bijapur, Golconda and the Maratha Swarashtra under Shivaji and his successors.
•  It has been argued that the economical dimension of the perpetual conquest of Deccan marked the beginning of the decline of Mughal power in India. o Religious Fanaticism
•  He discriminated against sections of the nobles and officials on the basis of religion.
• This led to widescale resentment among the nobility.

Failure of the mansabdar-jagirdari system

• Towards the end of Aurangzeb's reign, this system went into disarray.
• The sudden increase in the number of nobles caused due to the expansion of the Empire into the Deccan and Maratha territory created a crisis in the functioning of the jagir system. According to Athar Ali (historian), the nobles competed for better jagir, which was increasingly becoming rare due to the influx of nobles from the south. This often resulted in law and order problems and decimated the authority of the state.
• The logical consequence was the erosion in the political structure which was based on jagirdari to a large extent.
•  Hence all the statements are correct.