The correct answer is B. Srinagar.
Srinagar is the summer capital of Jammu and Kashmir and is famous for its beautiful lakes, gardens, and Mughal architecture. It is also a major center for handicrafts, including jewellery. The jewellery of Srinagar is known for its intricate designs and use of precious and semi-precious stones.
A. Baramulla is a town in the Baramulla district of Jammu and Kashmir. It is located on the banks of the Jhelum River and is a major commercial center for the region. The town is not known for its jewellery.
C. Jammu is the winter capital of Jammu and Kashmir and is located in the Jammu region of the state. It is a major commercial and cultural center. The city is not known for its jewellery.
D. Kathua is a town in the Kathua district of Jammu and Kashmir. It is located on the banks of the Ravi River and is a major commercial center for the region. The town is not known for its jewellery.