Solution

The most appropriate answer will be option B that is retroactive effect of recognition as in the case of Luthor Vs. Sagor 1921 it was held that-   the recognition of the state was retroactive in effect, thus the change of govt and the delay in recognising the new govt would have no impact before the English courts. It was held that the British Government recognized the Government of Russia and the retrospective effect will be applicable for that recognition.