Option 1: Kerala - This option is incorrect. Kerala is not the largest producer of Lignite in India.
Option 2: Tamil Nadu - This is the correct answer. Tamil Nadu is the largest producer of Lignite in India. Lignite is a type of coal that is primarily used for power generation. Tamil Nadu has vast reserves of Lignite and operates several Lignite mines.
Option 3: Rajasthan - This option is incorrect. While Rajasthan has significant coal reserves, it is not the largest producer of Lignite in India.
Option 4: Gujarat - This option is incorrect. Gujarat is also not the largest producer of Lignite in India.
In summary, the correct answer is option 2, Tamil Nadu.