The smallest union territory of India in terms of area is :

Puducherry
Daman and Diu
Dadra and Nagar Haveli
Lakshadweep

The correct answer is (d) Lakshadweep.

Lakshadweep is the smallest union territory of India in terms of area. It is a group of islands in the Arabian Sea, off the coast of Kerala. The total area of Lakshadweep is 32 sq km.

Puducherry is the second smallest union territory of India, with an area of 492 sq km. Daman and Diu is the third smallest union territory, with an area of 112 sq km. Dadra and Nagar Haveli is the fourth smallest union territory, with an area of 492 sq km.

Lakshadweep is a group of 36 islands, of which only 10 are inhabited. The capital of Lakshadweep is Kavaratti. The main language spoken in Lakshadweep is Malayalam. The economy of Lakshadweep is based on tourism, fishing, and agriculture.