This is a moderate level question and could be easily be tackled if the policy has been gone through.
National Policy on Biofuels was approved in 2018.
i. The Policy categorises biofuels as "Basic Biofuels" viz. First Generation (1G) bioethanol & biodiesel and "Advanced Biofuels" - Second Generation (2G) ethanol, Municipal Solid Waste (MSW) to drop-in fuels, Third Generation (3G) biofuels, bio-CNG etc.
ii. The Policy expands the scope of raw material by allowing use of Sugarcane Juice, Sugar containing materials like Sugar Beet, Sweet Sorghum, Starch containing materials like Corn, Cassava, Damaged food grains like wheat, broken rice, Rotten Potatoes, unfit for human consumption for ethanol production.
Clearly, among the options given, groundnut seeds and horse gram are not mentioned and thus the correct answer is A (1,2,5 and 6 only).