Final answer:
The town of Ayodhya is associated with the important figure Rama, an avatar in Hinduism. King Ashoka of the Mauryan dynasty was instrumental in spreading Buddhism, which was founded by Siddhartha Gautama, the Buddha.
Step-by-step explanation:
Rushdie discusses the town of Ayodhya in the context of it being the birthplace of the important figure Rama, who is an avatar of the Hindu deity Vishnu. The correct answer to the question 'Rushdie discusses the town of Ayodhya, which was said to be the birthplace of what important figure?' is c) Rama.
An Indian ruler who promoted the spread of Buddhism after his own conversion was Ashoka, a king of the Mauryan dynasty. The founder of Buddhism is Siddhartha Gautama, also known as the Buddha, who proposed an alternative to Hinduism and taught people the path to escape suffering. Lastly, Ramayana is an epic where Rama's virtues and ideal society became models for Hindus to aspire to.