Translation:I looked at him and saw that he had not liked it.
English requires the pronoun 'it' at the end of this sentence. The alternative answer given is incorrect.
Would it be right to assume, that 'he' in this sentence, now likes whatever it is he had not liked before?
Not necessarily so. "He had finished the garlic- flavoured ice cream and when I looked at him I realised he hadn't liked it. - puke!!"