The correct answer is option 2, Patiala. Diesel Component Works (DCW) is a factory of the Indian Railways, and it is located in Patiala.
However, let`s dissect each option to provide a better understanding:
Option 1: Varanasi. While Varanasi is an important city in Uttar Pradesh and is known for its cultural and spiritual significance, it is not the location of Diesel Component Works (DCW).
Option 2: Patiala. This is the correct answer. Patiala is a city in Punjab and is home to the Indian Railways factory, Diesel Component Works (DCW).
Option 3: Perambur. Perambur is a neighborhood in Chennai, Tamil Nadu, and is home to the Integral Coach Factory (ICF) of the Indian Railways, not Diesel Component Works (DCW).
Option 4: Kapurthala. Kapurthala is another city in Punjab, but it is not the location of Diesel Component Works (DCW). Kapurthala is known for housing various other institutions and facilities.
In conclusion, the correct location of the Indian Railways factory, Diesel Component Works (DCW), is in option 2, Patiala.