It is a noteworthy fact that the Sanskrit texts and inscriptions of these six centuries rarely referred to the Muslims in religious terms.
Instead, ethnic or regional terms were generally employed to refer to them.
They included terms such as Turushka, Tajika, Mlechchha, Parasika, Yavana, Hammira, Gori, Turaka, Matanga and Garjanaka. Hence option 1 is correct.
Only in Veraval inscription of the time of Vaghela Arjunadeva, issued in the year 1264, one finds the term Musalmaana used to denote the Muslims.
Between fifteenth and seventeenth centuries too, Yavana, Shaka and Turushka were used but new words like Pathana, Mugil, Sultana and Patrishaha also made their appearance.
Interestingly, Allavadina (Alauddin Khilji) was referred to as Dillishwar and Yavana and his soldiers were called Turushka.
There are ample references in the Sanskrit texts of this period to the forging of political alliances between Yavana rulers and local or regional rulers who too were described not as Hindus but by their family names like Kakatiyas or Pandyas.