The correct option is 1)i.e. If he did not accept terms of surrender at 4.a.m of 10th May, the orders were, he shall be fired upon. Explanation Reading the passage carefully we find that:
In the second line of the second paragraph, it clearly states "If James did not accept terms of surrender at 4.a.m of 10th May, the orders were, he shall be fired upon".
The above sentence means that if Col James did not accept the terms of surrender he would be fired upon.
The correct answer is "If he did not accept terms of surrender at 4.a.m of 10th May, the orders were, he shall be fired upon."