Despite its high HDI, Kerala faces challenges in areas such as:

Unemployment
Environmental degradation
Social disparities
All of the above

The correct answer is: D) All of the above.

Kerala is a state in India with a high Human Development Index (HDI). However, it faces challenges in areas such as unemployment, environmental degradation, and social disparities.

Unemployment is a major problem in Kerala. The unemployment rate in Kerala is higher than the national average. This is due to a number of factors, including the decline of the traditional industries in Kerala, such as agriculture and fishing, and the lack of new job opportunities in the state.

Environmental degradation is another major challenge facing Kerala. The state is facing problems such as deforestation, pollution, and climate change. These problems are having a negative impact on the environment and the people of Kerala.

Social disparities are also a major challenge facing Kerala. There is a wide gap between the rich and the poor in the state. This gap is widening due to the lack of opportunities for the poor and the growing inequality in the state.

These are just some of the challenges facing Kerala. The state is facing a number of other challenges, such as poverty, corruption, and crime. The government of Kerala is working to address these challenges, but there is still a lot of work to be done.