The correct answer is option 4: 29 states.

Option 1: 27 states - This is incorrect as there are more than 27 states in the Indian Union.

Option 2: 28 states - This is incorrect as there are more than 28 states in the Indian Union.

Option 3: 30 states - This is incorrect as there are fewer than 30 states in the Indian Union.

Therefore, option 4: 29 states is the correct answer. India is composed of 29 states and 7 union territories, each with different administrative powers and governing bodies. These states and union territories collectively make up the Indian Union.