Step 1: Understanding the Question:
We must find why Indian artists began to use figures and stories in their paintings after the Indian Rebellion.
Step 2: Check the options:
Options 1, 2 and 3 give other reasons such as demand, European Realist influence and social concern. The NTA final answer key marks this option as correct.
Step 3: Option 4:
The key accepts that artists were influenced by the Ajanta paintings, which are rich in figures and stories.
Final Answer:
The correct option is 4, as per the NTA final answer key. \[ \boxed{\text{They were influenced by Ajanta paintings.}} \]