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Option 1: Andhra Pradesh - This state may use thermal electricity. However, this option cannot be confirmed as it is not mentioned in the question.
Option 2: Tamil Nadu - This state may use thermal electricity. However, this option cannot be confirmed as it is not mentioned in the question.
Option 3: Arunachal Pradesh - The correct answer is 3. The question states that this state does not use thermal electricity. Therefore, Arunachal Pradesh does not rely on thermal power generation.
Option 4: Madhya Pradesh - This state may use thermal electricity. However, this option cannot be confirmed as it is not mentioned in the question.
In conclusion, the correct answer is 3. Arunachal Pradesh does not use thermal electricity, as stated in the question.