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The correct answer is option 3 - Soft alluvium of the Northern Plains.
Option 1 - Gneiss, granites, and basaltic terrains of Peninsular India are hard rocks and hence digging bore wells and canals in these terrains would be difficult.
Option 2 - Rolling and dotted hilly terrain of North-East India is characterized by uneven landforms and rocky areas, making it challenging to dig bore wells and canals.
Option 3 - Soft alluvium of the Northern Plains is composed of loose sedimentary deposits such as sand, silt, and clay. These deposits are relatively soft and easier to dig through, allowing for the construction of bore wells and canals in this terrain.
Option 4 - Confined aquifer below the normal water table refers to water-bearing layers of rock or sediment that are under pressure and confined by impermeable layers. While bore wells can be dug in confined aquifers, it is not specific to any particular terrain.
Therefore, among the given options, the soft alluvium of the Northern Plains is the terrain where bore wells and canals can be dug easily.