This is one of those questions in which the key to answering them is just one small part of their structure. All of the first part of the sentence, and the description of al-Khazini, is not helpful in answering the question. The blank relates to a town, and how the town was once located in an ancient empire but is now 'part of' of a modern country. The preposition 'in' as per how the town was in Persia essentially nullifies almost all of the other answer choices.

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