The question requires us to arrange the Military Training Institutes in India in terms of their geographical location from north to south. Let`s analyze each option:

Option 1: I, III, V, IV, II

This option arranges the institutes as Indian Military Academy (I) - National Defence Academy (III) - College of Defence Management (V) - National Defence College (IV) - Officers Training Academy (II). However, this arrangement is not in the north to south direction, so this option is incorrect.

Option 2 (Correct): II, III, V, II

This option arranges the institutes as Officers Training Academy (II) - National Defence Academy (III) - College of Defence Management (V) - Indian Military Academy (I). This arrangement follows the north to south direction, so this option is correct.

Option 3: IV, V, III, II, I

This option arranges the institutes as National Defence College (IV) - College of Defence Management (V) - National Defence Academy (III) - Officers Training Academy (II) - Indian Military Academy (I). However, this arrangement is not in the north to south direction, so this option is incorrect.

Option 4: III, IV, I, II, V