The correct answer for this question is Option 2: Lothal. Lothal was a prominent site of the Indus Valley Civilization and it is known for having an ancient dockyard.

To understand why Lothal had a dockyard, we need to consider its geographical location. Lothal is situated near the Gulf of Khambhat in Gujarat, India. It was a coastal town on the banks of the river Sabarmati, and it had connections with the Arabian Sea. This strategic location made it an ideal site for a dockyard.

The dockyard in Lothal was a well-planned structure, which included a basin that was connected to the river through a channel. This allowed boats and ships to enter the dockyard during high tide and exit during low tide. The dockyard was also equipped with a complex system of channels and drains to manage the flow of water.

The presence of a dockyard in Lothal indicates that the Indus Valley Civilization had a well-developed maritime trade network. It suggests that the people of this civilization were skilled in shipbuilding and navigation, and they actively engaged in trade with other regions through the sea routes.

In conclusion, the ancient dockyard in the Indus Valley Civilization was located in Lothal, a coastal town in Gujarat,