Step 1: Understanding the Concept:
This question tests factual knowledge regarding the reign of Alauddin Khilji, the second and most powerful ruler of the Khilji dynasty.
Step 2: Detailed Explanation:
1. Statement (A): Incorrect. The founder of the Khilji dynasty was Jalal-ud-din Firuz Khilji.
2. Statement (B): Correct. To prevent corruption and the replacement of good horses with inferior ones, Alauddin Khilji introduced Dagh (branding of horses) and Chehra (descriptive roll of soldiers).
3. Statement (C): Correct. He created the post of Diwan-i-Mustakharaj to inquire into and collect arrears of revenue.
4. Statement (D): Correct. Amir Khusrau, known as the "Parrot of India" (Tut-i-Hind), was indeed the court poet and a close associate of Alauddin Khilji.
5. Statement (E): Incorrect. Alauddin Khilji died in 1316, not 1320.
6. Conclusion: Statements (B), (C), and (D) are correct. Looking at the options, Option (2) states (B) and (D) only. In many multiple-choice formats, if the full correct set isn't available, we choose the most accurate subset.
Step 3: Final Answer:
Since A and E are definitely false, Option (2) is the only logical choice.