As per NIPUN Bharat Mission, Lakshayas (targets) i.e. the learning goals of FLN must be achieved by all states. For reading with comprehension the Lakshayas in grade 1 are:

Correct option is C

read small sentences consisting of at least 4-5 simple words in an age appropriate unknown text
The NIPUN Bharat Mission is a national initiative that aims to achieve universal foundational literacy and numeracy in all elementary school children by 2023. The Lakshayas (targets) for reading with comprehension in grade 1 are to read small sentences consisting of at least 4-5 simple words in an age-appropriate unknown text.