The correct answer is Option 2: Kenya.

Dadaab is indeed a well-known refugee camp, and it is located in Kenya. The camp was established in 1991 near the town of Dadaab, in northeastern Kenya. It is one of the largest refugee camps in the world and has gained significant media attention over the years due to its size and the prolonged displacement of people living there.

Here are a few reasons why Dadaab is located in Kenya and not in the other options:

1. Ethiopia: While Ethiopia has experienced its share of displacement and refugee situations, including hosting a significant number of refugees, the Dadaab camp is not located in Ethiopia.

2. Somalia: Dadaab is located close to the border between Kenya and Somalia, making it accessible for people fleeing conflict and instability in Somalia. The camp primarily hosts refugees from Somalia, who have been forced to flee due to civil war, drought, and political instability in their home country.

3. Sudan: Sudan has also had its share of displacement and refugee issues, particularly in regions like Darfur. However, Dadaab is not situated in Sudan.

In addition to the above reasoning, it`s worth noting that Dadaab has faced numerous challenges over the years, including overcrowding, limited resources, and the need for long-term solutions for its residents. The camp has experienced significant population growth and currently hosts hundreds of thousands of refugees, making it a complex humanitarian situation.

In summary, Dadaab, the large refugee camp frequently mentioned in the news, is located in Kenya. It has gained international attention due to its size and the protracted displacement of its residents, primarily refugees from neighboring Somalia.