Shehnai
To solve this question, we need to identify the musical instrument associated with the famous Indian instrumentalist Bismillah Khan.
Bismillah Khan was a legendary musician known for his mastery of the Shehnai, a wind instrument commonly used in Indian classical music.
Thus, the famous instrumentalist Bismillah Khan was associated with the Shehnai.
Conclusion: The correct answer is that Bismillah Khan was associated with the Shehnai.

| State | Literary Award |
|---|---|
| A. Gujarat | I. Sur Samman |
| B. Haryana | II. Ezhuthachan Puraskaram |
| C. Kerala | III. Thiruvalluvar Award |
| D. Tamil Nadu | IV. Sahitya Gaurav Puraskar |