The correct answer is option 1: Telangana is surrounded by 5 states.

To understand this, let`s look at the location of Telangana on a map. Telangana is a state in southern India, bordered by several other states. It is located to the north of the state of Andhra Pradesh, which was its parent state before Telangana became an independent state in 2014.

To the west of Telangana is the state of Maharashtra, and to the northwest is Karnataka. In the northeast, Telangana shares a border with Chhattisgarh, and to the east is the state of Odisha. Hence, Telangana is surrounded by these 5 states: Andhra Pradesh, Maharashtra, Karnataka, Chhattisgarh, and Odisha.

Each of these states has its own unique cultural and geographical characteristics, making Telangana a diverse and vibrant region.