The correct answer is option 3, Amritsar. The world`s first Partition Museum was recently inaugurated in Amritsar. It is a museum that aims to provide a holistic understanding of the Partition of India in 1947.
Option 1, New Delhi, is incorrect because although New Delhi is the capital of India and a significant city, it is not where the Partition Museum is located.
Option 2, Lahore, is incorrect because Lahore is a city in Pakistan and not where the Partition Museum is located.
Option 4, Islamabad, is incorrect because Islamabad is the capital of Pakistan and not where the Partition Museum is located.
Therefore, the correct answer is option 3, Amritsar, as it is the city where the world`s first Partition Museum was recently inaugurated.