Kautilya defined the state system as a ruthless realistic system which was determined by self-interest, compatible with the structure of the existing state system of India in that time. India at this period was mostly composed of a number of small independent states, being in a rivalry with each other with the exception of the Magadha kingdom. Kautilya played an important role in the fall of the Magadha kingdom and the rise to power of the Mauryan dynasty. In fact, Kautiya was a political realist; and the key theme of his theory represented in his book was war. According to Kautilya, war is what defines inter-state relations. Kautilya defined six forms of foreign policy.

• Peace: entering into a treaty; when the state is weaker than the enemy, it should make peace.
• War: attacking and doing injury; when the state is stronger than the enemy, it should make war.
• Non alignment: staying quiet; when the state is equal with the enemy and neither is capable of harming the other, the state should stay quiet.
• Seeking shelter: When threatened by a stronger enemy the state should seek protection from another stronger state, somewhat forming an alliance.
• Shows of force: When the state is increasing in capabilities, it should augment and mobilize resources to prepare for war.
• Double-dealing: When a state seeks help for attacking another state, it resorts to peace and war at the same time with different states. The correct answer is Choice E.