During the 16\textsuperscript{th} and 17\textsuperscript{th} centuries, zamindars played a crucial role in the Mughal administrative and agrarian structure. They acted as intermediaries between the state and the peasants, primarily tasked with collecting land revenue on behalf of the state.
Though they often held substantial land and had influence in their areas, their key administrative duty was revenue collection. In return, they retained a portion of the collected revenue as their remuneration.
While some zamindars may have been exploitative or maintained good or bad relations with villagers, those characterizations are not universally true. Option (B) most accurately and generally reflects their institutional role during that period.