The question is asking you to match the dams (List I) with their respective states (List II) and select the correct answer using the given options.

Let`s analyze each option:

1. A-4, B-5, C-1, D-3: This option does not match the dams with the correct states. It is incorrect.

2. A-4, B-1, C-2, D-3: This option matches Malaprabha with Gujarat, which is incorrect. The correct match for Malaprabha is Karnataka. So, this option is also incorrect.

3. A-3, B-2, C-1, D-4: This option correctly matches Malaprabha with Karnataka, Panam with Andhra Pradesh, Pochampad with Gujarat, and Upper Penganga with Maharashtra. Therefore, this option is correct.

4. A-3, B-1, C-2, D-4: This option incorrectly matches Pochampad with Gujarat and Upper Penganga with Andhra Pradesh. It is incorrect.

Therefore, the correct answer is option 3.