Explanation:

- Option 1: Chhattisgarh – Known for its vibrant culture and natural resources, but not the leading state in literacy as per Census 2011.

- Option 2: Bihar – Noted for its historical significance, but it struggled with lower literacy rates in the 2011 Census.

- Option 3: Kerala – Known for its high literacy rates and strong emphasis on education, Kerala was indeed the most literate state as per Census 2011.

- Option 4: Punjab – While performing well in several areas, it did not surpass Kerala in terms of literacy.