Final answer:
The term Aryan is false in the context of native inhabitants of India; it actually refers to Indo-Europeans who migrated to India and established the Vedic religion and caste system.
Step-by-step explanation:
The statement that the term Aryan was coined from the Sanskrit word to denote the native inhabitants of India is false. The term Aryan in fact relates to a group of Indo-Europeans who, according to prominent theories, migrated from Central Asia around 2000 BCE. This group, also known as the Indo-Europeans, established themselves in northern India along the plains of the Ganges River, as well as on the Deccan Plateau. The followers of the Vedas, often referred to as Aryans, brought the Vedic religion with its pantheon of gods, and they established a social structure which later developed into the Hindu caste system.