Explanation:

- Indian mercantile law is the body of laws governing trade and commerce in India.

- It is primarily based on British legal principles that governed India during the colonial period.

- Option 1: Indian culture

- While Indian culture influences certain legal practices, Indian mercantile laws are not based on indigenous cultural principles.

- Option 2: British culture

- While influenced by British legal principles, it's more precise to say Indian mercantile laws are modeled after English law.

- Option 3: England law

- Indian mercantile laws largely derive from laws that were established during British rule, effectively following English legal structures. (Correct Answer)

- Option 4: American law

- The laws in India are not based on American law, as India was primarily influenced by British legislation.