The Forest Research Institute of India is located in Dehradun. This is the correct answer. Option 1, New Delhi, is incorrect as the institute is not located in the capital city. Option 2, Hyderabad, is also incorrect as the institute is not located in Hyderabad either. Option 4, Shimla, is also incorrect as the institute is not located in Shimla either. Therefore, the correct answer is option 3, Dehradun.