The question asks about the state with the highest female literacy rate according to the 2001 Census in India.

Option 1: Chhattisgarh. This is the correct answer. As per the Census of India in 2001, Chhattisgarh had the highest female literacy rate compared to Madhya Pradesh, Orissa, and Rajasthan.

Option 2: Madhya Pradesh. This option is incorrect. As per the 2001 Census data, Madhya Pradesh did not have the highest female literacy rate among the given options.

Option 3: Orissa. This option is also incorrect. The female literacy rate in Orissa was not the highest among these four states according to Census 2001.

Option 4: Rajasthan. This is incorrect too. As per the 2001 Census, Rajasthan`s female literacy rate was not the highest among the provided options. It is known for having comparatively lower literacy rates, especially among women, due to various socio-economic factors.

So, based on the census data from 2001, Chhattisgarh had the highest female literacy rate among the states presented in the options.