Question 7.

".....empirically inclined theorists of that generation considered the colonies a massive laboratory of utilitarian or other theoretical experiments" From these lines option A can be inferred.

Consider the lines, "e British colonial state represented the great conquering discourse of Enlightenment rationalism, entering India precisely at the moment of its greatest unchecked arrogance. . As inheritors and representatives of this discourse, which carried everything before it, this colonial state could hardly adopt for long such a self-denying attitude." Option C can be inferred from it. 

Consider the lines , " It had restructured everything in Europe—the productive system, the political regimes, the moral and cognitive orders—and would do the same in India, " Option D can be inferred from these lines.

It is nowhere mentioned in the passage, that British colonialism faces resistence from the existing structural forms of Indian modernity. Hence , option B is the correct answer.