The correct answer is option 2, Kanchi. The Pallavas were a dynasty that ruled over parts of South India from the 3rd to the 9th century. Kanchi, also known as Kanchipuram, was the capital city of the Pallava dynasty. Kanchi is located in the present-day state of Tamil Nadu. It was an important center for art, culture, and trade during the Pallava rule. Kanchi was renowned for its magnificent temples and stone sculptures, which showcased the architectural and artistic skills of the Pallavas. The city`s strategic location, near the banks of the river Palar, also made it a significant center for trade and commerce. Overall, Kanchi played a crucial role in the political, cultural, and economic activities of the Pallava dynasty.