Explanation:

2nd option is correct.
The Indian National Congress was founded during the viceroyalty of Lord Dufferin.
Lord Dufferin served as Governor General of India and Viceroy from 1884 to 1888. During his tenure, the Third Burmese war led to annexation of whole of Burma and Burmese ruler was exiled to India. In 1885, AO Hume laid the foundation of Indian National Congress. In 1885, the Panjdeh Incident happened in which the Russian forces seized Afghan territory south of Amu Darya around site of Panjdeh {now located in Turkmenistan}. This created a diplomatic crisis between Russia and Great Britain.