The Palk Strait is a narrow stretch of water that lies between the Bay of Bengal and the Gulf of Mannar. It separates the southeastern coast of India from the northern coast of Sri Lanka.

Option 2, Andaman and Nicobar Islands, is incorrect as they are located further east in the Bay of Bengal, away from the Palk Strait.

Option 3, Rann of Kutch and Gulf of Khambhat, is incorrect as they are located on the western coast of India, far away from the Palk Strait in the eastern part of the country.

Option 4, Lakshadweep and Maldives, is incorrect as the Lakshadweep Islands are located in the Arabian Sea, west of the Indian mainland, and the Maldives are further south of Sri Lanka in the Indian Ocean.

Therefore, the correct answer is option 1, Bay of Bengal and Gulf of Mannar.