The correct answer is B. Baddi.
Baddi is a town in Solan district of Himachal Pradesh, India. It is located on the banks of the Sutlej River, about 100 kilometers from the state capital, Shimla. Baddi is known for its industrial development, and is home to a number of steel fabrication mills.
The other options are incorrect. Parwanoo is a town in Solan district of Himachal Pradesh, India. It is located on the foothills of the Himalayas, about 50 kilometers from the state capital, Shimla. Parwanoo is a popular tourist destination, and is known for its scenic beauty. Raighat is a town in Bilaspur district of Himachal Pradesh, India. It is located on the banks of the Sutlej River, about 150 kilometers from the state capital, Shimla. Raighat is a small town, and is not known for its industrial development. Paonta Sahib is a town in Sirmaur district of Himachal Pradesh, India. It is located on the banks of the Yamuna River, about 200 kilometers from the state capital, Shimla. Paonta Sahib is a holy town, and is home to a number of temples.