Step 1: Understanding the Pilgrimage Tax.
The Pilgrimage Tax was a tax imposed on Hindus who went on religious pilgrimages, especially to temples.
Step 2: Akbar's policy.
Akbar, known for his policies of religious tolerance, abolished the pilgrimage tax in 1563, allowing religious freedom to Hindus and Muslims alike.
Step 3: Conclusion.
Therefore, Akbar abolished the pilgrimage tax, making option (1) correct.