D
Dominion status IS independence for all practical purposes, frankly getting upset about this when India has the same status as the White Dominions seems odd to me, long term I would think the Indians would be rather more worried about North China, Russia and the Indian communities in South Africa, all of which being on good terms with the UK could help with.I don't think the USSR at the time have nukes yet. Nor using a bomb with a Republican sitting President if would mean risk of nuclear retaliation.
I think this is more what may happen. Well at least the Soviets would have their Afghanistan early... The USSR had yet to rebuild. Is already siphoning supplies to prop Serbia and it won't be easy at all if Hungary and Romania would start to tighten controls. They were purging people left and right and persecuting Jews. The only advantage is they don't have to spread troops in half of Europe.
At the same time, I forgot to say I think Churchill is doing wrong to keep the Raj within the Empire. I can see after Iran won't like to see India under threat, but dominion status won't suffice at this point.