The correct answer is option 2, Kerala. Kerala is the state in India that produces the largest amount of natural rubber. Natural rubber is an important agricultural product in Kerala and it is primarily cultivated in the hilly regions of the state. The favorable climate and topography of Kerala provide ideal conditions for the cultivation of rubber trees. The major rubber-producing districts in Kerala include Kottayam, Kollam, and Ernakulam. These districts have a large number of rubber plantations and contribute significantly to the overall rubber production in India. It is worth mentioning that while other states like Karnataka and Tamil Nadu also produce natural rubber, their production is relatively smaller compared to Kerala.