(i) True.
The extract gives two pieces of evidence, and both point the same way. First, pankhas “became significant cultural goods distributed through trade routes” — a thing that travels along trade routes is, by definition, an item of commerce, and “significant” tells you it mattered in that trade. Second, “They were considered exotic and stylish” — that is the language of desirability, and desirable goods sell. Put together, the extract supports the statement.
(ii) Because these pankhas were not new or invented designs — they were the long-established, inherited pattern of a particular place, made the same way over generations. The extract says “different villages and towns developed their own varieties”, each with “distinct materials” and its own “intricate designs”. A design that belongs to a place, is passed down in it, and is repeated by every maker in it, is by definition traditional. The word also quietly separates these fans from the “innovative creations” that appear later in the chapter and threaten them.
(iii) …because it records what people thought of pankhas — a judgement of taste that cannot be measured, tested or proved, and that would differ from one person to another. The verb itself gives it away: “they were considered” means somebody held this view. Set the two sentences side by side and the difference is plain — “distributed through trade routes” can be checked against records and can be shown true or false; “exotic and stylish” cannot.
(iv) Because the need was the same everywhere: most of India is hot for most of the year, and before electricity the only way an ordinary household could move air was by hand. A common climate and a common need produced a common object.
(v) A. Each kind of pankha could be distinguished from the other.
Test each option against the reason. The reason offers two facts — indigenous materials unique to the region and elaborate designs. Both are marks of difference, and the extract draws exactly that conclusion in its last line: distinct materials and intricate designs “set them apart from one another”. So A follows.
B does not. That pankhas were made of local materials with fine designs says nothing about how many people used them; widespread use is asserted elsewhere in the extract (“substantial commonality in their use across India”) and has a different cause altogether. A reason must lead to its assertion, and this one leads only to A.