The correct answer is option 2 - Lakshadweep. Literacy rate refers to the percentage of people in a particular age group who can read and write. In the case of Lakshadweep, it has consistently recorded the highest literacy rate among all the union territories in India. This may be attributed to several factors, such as the focus on education by the local administration and the availability of educational facilities. Delhi, Chandigarh, and Pondicherry also have high literacy rates, but Lakshadweep surpasses them in terms of literacy. It is important to note that literacy rates can change over time, so it is essential to rely on recent data when discussing literacy rates.