Explanation:

Decreased money circulation leads to lesser money in hands of people to spend. Hence, lower demand (given the same supply) leads to falling prices fall and reduced inflation.

RBI and government both play a role in controlling the inflation. Hence, a and b are incorrect. Increased money circulation leads to increased inflation as demand increases. RBI increases bank rates and SLR etc. to reduce money supply in the market which tames demand and hence, inflation.