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Option 1: Cholamandalam - This option is incorrect. Cholamandalam was not the kingdom ruled by King Kharvela. It was actually a kingdom in ancient Tamil Nadu, under the Chola Dynasty.
Option 2: Kalinga - This option is correct. King Kharvela was the greatest ruler of the Chedi Dynasty of Kalinga. Kalinga was an ancient kingdom located in present-day Odisha and had its capital in present-day Bhubaneswar. King Kharvela is known for his military conquests and his patronage of Buddhism.
Option 3: Kannauj - This option is incorrect. Kannauj was a major political and cultural center in North India, but it was not ruled by King Kharvela.
Option 4: Purushpur - This option is incorrect. Purushpur, now known as Peshawar, was a city in ancient Gandhara, but it was not under the rule of King Kharvela.
In conclusion, the correct answer is Option 2: Kalinga.