The Vayalar Award is given for outstanding work in:

Malayalam literature
Journalism
Environmental activism
Sports

The correct answer is A) Malayalam literature.

The Vayalar Award is an Indian literary award given annually by the Government of Kerala for outstanding work in Malayalam literature. It was instituted in 1982 in memory of Vayalar Ramavarma, a poet, playwright, and freedom fighter. The award consists of a cash prize of ₹5 lakh, a plaque, and a citation.

The award is given to a writer for a single work of literature published in the previous year. The work can be in any genre, including poetry, fiction, drama, essays, and criticism. The award is judged by a panel of eminent literary figures.

Some of the notable recipients of the Vayalar Award include M. T. Vasudevan Nair, K. Satchidanandan, Kamala Das, and O. N. V. Kurup.

Option B, Journalism, is incorrect because the Vayalar Award is not given for journalism. The Kerala Sahitya Akademi awards the K. Kelappan Award for outstanding work in journalism.

Option C, Environmental activism, is incorrect because the Vayalar Award is not given for environmental activism. The Indira Gandhi Paryavaran Puraskar is awarded by the Government of India for outstanding work in environmental protection.

Option D, Sports, is incorrect because the Vayalar Award is not given for sports. The Khel Ratna Award is the highest sporting honor in India.