The correct answer his question is Option 2.

In option 2, the institutes are correctly matched to their locations. The Central Institute of Higher Tibetan Studies is located in Varanasi, thus I is matched with E. The Indira Gandhi Institute of Development Research is situated in Mumbai, so II is matched with B. National Institute of Mental Health and Neuro-sciences is in Bangalore, making III matched to C. Finally, the Central Institute of English and Foreign Languages is in Hyderabad, so IV is matched with A.

Option 1 is incorrect as II (Indira Gandhi Institute of Development Research) is not in Bangalore, but Mumbai. III (National Institute of Mental Health and Neuro-sciences) is not in Dharamshala, but in Bangalore.

Option 3 incorrectly matches I (Central Institute of Higher Tibetan Studies) with C (Bangalore) and III (National Institute of Mental Health and Neuro-sciences) with D (Dharamshala).

Option 4 also incorrectly matches all institutes with their locations. The Central Institute of Higher Tibetan Studies is not in Dharamshala, and the Indira Gandhi Institute of Development Research is not in Varanasi. Similarly incorrect are the remaining matches.