Detailed Solution:
The correct answer is “Mahmud of Ghazni”.
The ruler who issued silver coins with Sanskrit legend on one side was: (2) Mahmud of Ghazni
Mahmud of Ghazni (998 to 1030 AD), a ruler from the Ghaznavid dynasty, is known for issuing bilingual coins. These coins had Arabic inscriptions on one side and Sanskrit inscriptions on the other.
The Sanskrit inscriptions often included the translation of the Islamic declaration of faith, "Kalima," as "Avyaktameka Avatar."