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MacMohan line demarcates the boundary between __________________.
A. India and Pakistan
B. India and China
C. India and Nepal
D. India and Bangladesh

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Answer
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Hint: 1. The MacMohan line was named after Lieutenant Colonel Sir Arthur Henry MacMahon nearly hundred years ago in 1914.
2.MacMahon was a British Indian officer and administrator within the British Raj.
3.MacMohan was foreign secretary of the British-run Government of India and also the chief negotiator of the Simla Accord.

Complete answer:
The MacMohan line demarcates the boundary between India and China. It runs from the eastern border of Bhutan along the crest of the Himalayas upto the nice bend within the Brahmaputra River where the river emerges from its Tibetan course into the Assam Valley.
The Shimla Treaty was signed between the representatives of India and Tibet for clear demarcation in 1914. China wasn't present during this agreement because till this point Tibet was an independent region, therefore did not require Chinese representation at the time of this Treaty. Thus in keeping with the Shimla Treaty, the McMahon Line is the clear boundary between India and China.
China claims that Tibet has always been part of its territory, therefore the representative of Tibet was not authorized to accept any agreement without Chinese consent. In 1950, China fully occupied Tibet. Now China neither approves nor accepts the McMahon Line and argues that China wasn't involved within the Shimla Agreement, therefore the Shimla Agreement isn't binding thereon.
According to India, when the McMahon Line was drawn, Tibet wasn't ruled by China Therefore, the McMahon Line is the clear and legal border between India and China.
A. India and Pakistan isn't the proper option because the Radcliffe line demarcates the boundary between these two.
B. India and China is the correct option as the MacMohan line demarcates the boundary between these two.
C. India and Nepal is the wrong answer as these two countries have an open international border.
D. India and Bangladesh isn't the proper option because the Radcliffe line also demarcates the boundary between these two.

Hence the correct answer is option B.

Note: 1. As per facts, Shimla (along with the McMahon Line) was initially rejected by the Govt. of India as incompatible with the 1907 Anglo-Russian Convention.
2. The McMahon Line was a negotiation between India and Tibet without the participation of the Chinese government.
3. In 1950, Tibet lost its status as an independent territory and India took control over Tawang.