Final answer:
During the Gupta Period, the official government position was the toleration of religious diversity, where Hinduism remained the state religion but other religions like Buddhism and Jainism were also supported. The correct option is (C).
Step-by-step explanation:
During the Gupta Period, the official position of the government concerning religion was C. the toleration of religious diversity in India. This era is marked by a flourishing of art, culture, and religion, with the notable expansion and sophistication of Hinduism which retained its position as the state religion.
Significant advancements were also made in the fields of mathematics, science, literature, and philosophy. The religious landscape was diverse, and the Guptas were known for supporting this diversity, including Hinduism, Buddhism, and Jainism, rather than imposing a theocracy or making any religion illegal.
While culturally and politically dominant, Hinduism during this period did not seek the elimination of other practices such as Buddhism or Jainism, demonstrating a level of religious tolerance and inclusivity.