The correct answer is option 3. It correctly matches each dancer with their respective dance form.

- Kalamandalam Kshemavaty is associated with Kathakali (A), a dance form known for its colorful makeup, costumes, and elaborate facial expressions, primarily from Kerala.

- Kottakkal Sivaraman is associated with Mohiniyattam (C), another classical dance form of Kerala incorporating swaying movements and delicate footsteps.

- Lakshmi Viswanathan is associated with Bharata Natyam (D), a popular classical dance form known for its grace, purity, tenderness, and sculpturesque poses originally from Tamil Nadu.

- N. Madhabi Devi is associated with Manipuri (B), a major Indian classical dance form, known for its smooth and graceful movements from Manipur.

The other options are incorrect as they do not correctly align each dancer with their respective dance form.