"Mala fide" is one of the most heavily used Latin tags in Indian courtrooms, and it always sits in contrast with its twin, "bona fide". If you remember only that pair, the question answers itself: bona fide is the honest one, mala fide is the dishonest one. The word "mala" shares its root with malice and malpractice, both of which signal something bad, and "fide" is faith. So the phrase describes an act done in bad faith.
So "mala fide" is best rendered as bad intention, which is option (B). A sentence like "the transfer order was challenged as mala fide" simply means the order is alleged to have been passed dishonestly.
Let's summarize:
The correct option is (B), bad intention.
LIST I | LIST II (Meaning) | ||
| A | Break into | I | in search of |
| B | Cut down | II | wear |
| C | Look out for | III | enter by force |
| D | Put on | IV | reduce |