The correct answer is C. Lahaul and Spiti.
Lahaul and Spiti is a district in the Indian state of Himachal Pradesh. It is the most sparsely populated district in India, with a population of just over 36,000 people. The district is located in the Himalayas, and its climate is cold and dry. The main occupation of the people of Lahaul and Spiti is agriculture, and they also raise yaks.
Yaks are large, domesticated animals that are native to the Himalayas. They are well-adapted to the cold climate, and they are used for their meat, milk, and wool. Yaks are also used as pack animals, and they are an important part of the economy of Lahaul and Spiti.
In 1968, the Indian government established a breeding farm of yaks in Lahaul and Spiti. The purpose of the farm is to improve the quality of yaks in the region, and to increase the production of yak meat, milk, and wool. The farm has been successful in achieving these goals, and it has played an important role in the development of the economy of Lahaul and Spiti.
The other options are incorrect because they are not places where breeding farms of yak have been established. Kullu is a district in the Indian state of Himachal Pradesh. Solan is a town in the Indian state of Himachal Pradesh. Shimla is the capital of the Indian state of Himachal Pradesh.