1. Parivrajaka: The term refers to a wandering ascetic or religious mendicant who has renounced worldly life and possessions to lead a life of spiritual pilgrimage. Thus, Pair 1 is correctly matched.

2. Shramana: This term refers to 'one who strives' or performs acts of austerity. Shramanas were practitioners of asceticism and seekers of liberation in traditions like Buddhism, Jainism, and the Ajivika sect. They were distinct from and often opposed to the Vedic Brahmanical priests and their social hierarchy. Thus, Pair 2 is incorrectly matched.

3. Upasaka: This term refers to the lay followers of Buddhism (and Jainism) who did not enter the monastic order (Sangha) as monks or nuns but followed the teachings of the Buddha in their daily lives. Thus, Pair 3 is correctly matched.

The ruler who advised his subjects through the inscription quoted is Ashoka.

This inscription is part of the Major Rock Edict XII of Ashoka. Ashoka, who ruled the Mauryan Empire from 268 to 232 BCE, is known for his embrace of Buddhism and his efforts to promote peace and non-violence after a particularly bloody war. His edicts, inscribed on pillars and rocks throughout his empire, conveyed his messages to his subjects. This specific inscription emphasizes religious tolerance and respect for all faiths.

Statement 1 is Incorrect: Panini was a renowned Sanskrit grammarian who authored the 'Ashtadhyayi' around the 5th-4th century BCE. Pushyamitra Shunga, the founder of the Shunga dynasty, ruled much later in the 2nd century BCE. It was the grammarian Patanjali who was contemporary to and associated with Pushyamitra Shunga.

Statement 2 is Incorrect: Amarasimha was a Sanskrit grammarian and poet, famous for the 'Amarakosha'. He was one of the 'Navaratnas' (nine gems) in the court of the Gupta Emperor Chandragupta II (Vikramaditya), whereas Harshavardhana ruled the Pushyabhuti dynasty much later in the 7th century CE.

Statement 3 is Correct: Kalidasa is widely regarded as the greatest Sanskrit poet and dramatist. He was one of the 'Navaratnas' in the court of Chandragupta II (r. 375-415 CE). His masterpiece works include 'Abhijnanashakuntalam', 'Meghaduta', 'Raghuvamsa', and 'Kumarasambhava'.

Statement 1 is incorrect. Sthaviravadins, also known as Theravadins, belong to the branch of Buddhism known as Theravada, which is distinct from Mahayana Buddhism.

Statement 2 is correct. The Lokottaravadin sect emerged as an offshoot of the Mahasanghika sect of Buddhism. Lokottaravada means "transcendentalist" or "those who consider themselves above or beyond the world."

Statement 3 is correct. The Mahasanghika sect of Buddhism was one of the early Buddhist schools that existed alongside other early Buddhist schools, such as the Sthaviravadins. The Mahasanghikas are believed to have played a role in the development of Mahayana Buddhism, which saw the deification of the Buddha and the emergence of new sutras and doctrines.

The term "paramitas" in the cultural history of India refers to Perfections that have to be achieved by a Bodhisattva.

Paramitas are virtues or perfections that Mahayana Buddhists believe must be cultivated and perfected by Bodhisattvas on the path to enlightenment.

These perfections include generosity (dana), moral conduct (sila), patience (kshanti), diligence (virya), meditation (dhyana), and wisdom (prajna). Practising and perfecting these virtues are considered essential for Bodhisattvas to attain Buddhahood and to help others achieve liberation from suffering.

Therefore, option C is the correct description of the term "paramitas."