The correct answer is option 1: Gujarat. Lothal is a significant archaeological site that was part of the Indus Valley Civilization, one of the earliest urban civilizations in the world. It is located in the modern-day state of Gujarat, India. Lothal was an ancient dockyard and trading center that existed around 2400 BCE. It had a well-planned urban layout and a sophisticated drainage system. The site also had a dockyard with a series of docks and channels that connected it to the Gulf of Khambhat. Lothal`s strategic location made it an important trading hub for the civilization, connecting it to other parts of the Indus Valley region and beyond. The excavations at Lothal have provided valuable insights into the economic, technological, and cultural aspects of the Indus Valley Civilization.