Step 1: Understanding the Concept:
Despite a history of conflict, India and Pakistan have signed several "Confidence Building Measures" (CBMs) to prevent nuclear escalation.
Step 2: Detailed Explanation:
1. The Agreement: The Non-Nuclear Aggression Agreement was signed on December 31, 1988.
2. The Leaders: It was signed by Rajiv Gandhi (India) and Benazir Bhutto (Pakistan).
3. Significance: It requires both countries to exchange a list of their nuclear installations on January 1st every year, a tradition that continues to this day.
Step 3: Final Answer:
The agreement was signed in 1988. Thus, (B) is correct.