The festival celebrated with the exchange of sweets and the flying of kites:

Bhogi
Varamahalakshmi
Makara Sankranti
Pongal

The correct answer is: C) Makara Sankranti

Makara Sankranti is a Hindu festival celebrated on the day of the winter solstice in the northern hemisphere, which usually falls on January 14 or 15. It is a major harvest festival in India and is celebrated with the exchange of sweets and the flying of kites.

Bhogi is a Hindu festival celebrated on the day before Makara Sankranti. It is a day of cleaning and purification, and people traditionally burn old items and clothes to make way for the new year.

Varamahalakshmi is a Hindu festival celebrated on the day of the full moon in the month of Karthika (November-December). It is a festival dedicated to the goddess Lakshmi, the goddess of wealth and prosperity.

Pongal is a Tamil harvest festival celebrated over four days in the month of Thai (January-February). It is a major festival in Tamil Nadu and is celebrated with the harvesting of rice and the worship of the sun god.