The correct answer is option 2, London.

Dadabhai Naoroji founded the East India Association in 1866. This association was created to represent the interests and advocate for the rights of Indians living in British India. Naoroji, also known as the "Grand Old Man of India," was a prominent Indian political leader and the first Asian to be elected to the British Parliament.

Although there were several cities around the world where Indian communities were established during the time, the East India Association was specifically founded in London. London was the political, economic, and cultural center of the British Empire, and Naoroji believed that it was the ideal location to establish an organization that could effectively work towards advancing Indian interests.

It is important to carefully consider each option before selecting the correct answer. In this case, options 1 (Paris), 3 (New York), and 4 (Tokyo) are incorrect as Naoroji founded the East India Association in London, not in these cities.