2nd option is correct.

Muhammad- bin-Tughluq transferred his capital from Delhi to Devagiri (Which he named Daulatabad) because Devagiri was more centrally located.

Muhammad bin Tughluq was the Sultan of Delhi of Turkic descent through 1324 to 1351. He was the eldest son of Ghiyas-ud-din Tughlaq of the Tughluq dynasty. He was born in Kotla Tolay Khan in Multan. His wife was the daughter of the Raja of Dipalpur.