Nastaliq was

Nastaliq (also spelled nastaʿlīq) is a Perso‑Arabic calligraphic script developed in Iran in the late medieval period and subsequently adopted across the Persianate world, being especially suited for transcribing Persian verse and literary texts; by the 15th century it was used from Istanbul to Delhi and reached prominence in Mughal India [1]. In South Asia Nastaliq became the preferred hand for Persian and later for Urdu and Kashmiri manuscripts and courtly literature under the Mughals, establishing it as a script rather than a musical raga, a tax (cess), or a juristic manual for ulemas. Thus option 1 is correct.

Sources

1. [1] https://asia.si.edu/whats-on/exhibitions/nastaliq-the-genius-of-persian-calligraphy/