The question is a matching type question where you have to correctly associate the dynastic rule in ancient India (List I) with their respective capital/location (List II).

Let`s dissect options:

Option 1: I-D, II-C, III-A, IV-B; Gupta Empire with Deogarh, Chandella Dynasty with Khajuraho, Chalukya Dynasty with Badami, and Pallava Dynasty with Panamalai. This is the correct match.

Option 2: I-D, II-B, III-C, IV-A; This option incorrectly matches Chandella with Panamalai and Chalukya with Khajuraho.

Option 3: I-B, II-C, III-D, IV-A; This option incorrectly matches Gupta with Panamalai and Chalukya with Deogarh.

Option 4: I-C, II-D, III-A, IV-B; This option incorrectly matches Gupta with Khajuraho and Chandella with Deogarh.

Thus, Option 1 is the correct answer as it accurately matches the dynasties with their corresponding locations.