Correct Answer: (b) Andaman and Nicobar Islands
Note: When the question was asked in the paper, the largest Union Territory of India was the Andaman and Nicobar Islands. Its area is 8249 sq. km. In comparison, Puducherry has an area of 490 sq km. Chandigarh's area is about 114 sq. km. On the other hand, the smallest Union Territory of India is Lakshadweep (area 32 sq. km). Currently, Jammu and Kashmir is the largest union territory of the country in terms of area, followed by Ladakh.