Explanation:

Correct Answer is (c).It is clear from the given sentence that chaotic traffic is very common in Puducherry because of reasons such as poor traffic management, disregard of rules by motorists and vehicle drivers etc. The words in blank should reflect the meaning as intended.
Option A is not correct since both the words do not fit in the given context. Same can be said about option B, D and E.
Option C fits in the blanks since it is implied that chaotic traffic is very common in the union Territory whereas one of the reasons can be the posting of insufficient number of policemen in the major areas of the U.T.
This makes option C the correct choice among the given options.