Step 1: Analyzing the given reaction.
The element 'M' reacts with dilute HCl but does not evolve hydrogen gas, which suggests that element 'M' is not an active metal like Zn, which would react with HCl to produce H$_2$.
MSO$_4$ reacts with KCN to form a compound 'P'. This suggests that 'M' could be a transition metal forming a complex.
Step 2: Understanding the reaction with H$_2$S.
When compound ‘P’ is treated with H$_2$S, no sulphide precipitate (CuS) forms. This means that the element 'M' in the complex does not react with H$_2$S to form a metal sulphide. Therefore, no MS is formed.
Step 3: Conclusion.
The amount of MS formed is 0 moles. Hence, the correct answer is (1).