Correct Answer:
C. Jammu and Kashmir
Dal Lake is a prominent and picturesque lake located in Jammu and Kashmir, specifically in Srinagar, the summer capital of the union territory. It is renowned for its houseboats, shikaras, and floating gardens, making it a major tourist attraction. Option C is the correct answer. Himachal Pradesh (Option A), Uttarakhand (Option B), and Sikkim (Option D) are other Indian states known for their natural beauty and lakes, but Dal Lake is uniquely situated in Jammu and Kashmir, distinguishing it from lakes in these other regions.