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Hiba-bil-iwaz is a type of gift under Islamic law where the gift is given in exchange for something of equivalent value. In this case, the gift by the husband to the wife in lieu of her dower is recognized as hiba-bil-iwaz. Dower is a sum of money or property that a husband is required to give to his wife at the time of marriage as a financial security for her future. It is considered the wife's right and cannot be taken away from her. The husband may choose to give the dower amount as a gift to his wife in the form of hiba-bil-iwaz. Option (B) Hiba-ba-shartul-iwaz is another type of gift in which a condition is attached to the gift. However, it is not applicable in the given scenario. Option (C) Hiba is a simple gift without any condition attached to it. Option (D) Will is a legal document that outlines a person's wishes regarding the distribution of their assets after their death. It is not relevant in the context of the given scenario.
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