The correct answer is option 4: Lakshadweep. Lakshadweep is the smallest Union Territory in terms of area. It is a group of islands located in the Arabian Sea. It covers an area of approximately 32 square kilometers.
Option 1: Chandigarh is a Union Territory with a land area of about 114 square kilometers, making it larger than Lakshadweep.
Option 2: Dadra and Nagar Haveli is a Union Territory located in western India. It covers an area of around 491 square kilometers, which is significantly larger than both Lakshadweep and Chandigarh.
Option 3: Daman and Diu is also a Union Territory located along the western coast of India. It has an area of approximately 112 square kilometers, making it larger than Lakshadweep but smaller than Chandigarh.