The correct answer is: C. Living rooms
A dado is a decorative molding that runs horizontally around the walls of a room, usually at about waist height. It is often made of wood, but can also be made of other materials such as plaster or stone. Dadoes are typically used to add visual interest to a room, and can also be used to define different areas within a room.
Dining halls, bathrooms, and verandahs (or balconies) are not typically places where dadoes are used. Dining halls are often decorated with other types of moldings, such as chair rails or crown moldings. Bathrooms are often tiled, and dadoes would not be practical in this type of setting. Verandahs (or balconies) are often open-air spaces, and dadoes would not be necessary in this type of setting.
In conclusion, dadoes are typically used in living rooms to add visual interest and to define different areas within the room.