Explanation:

- The Chief Minister of a Union Territory with a legislature is appointed by the President under Article 239AA of the Constitution, but in practice, it is done by the Lt. Governor as the President’s representative.

- The Lt. Governor invites the leader of the majority party or alliance in the legislative assembly to form the government.

- The majority party in the legislature only identifies the leader, but does NOT appoint the Chief Minister.

- The President's role is constitutional, but not direct appointment. It's actually delegated to the Lt. Governor.

- The Prime Minister has no role in appointing the Chief Minister of a Union Territory.

Correct Answer:

Option 1: The Lt. Governor