Explanation:

- Option 1: Andaman and Nicobar

- These islands are located in the Bay of Bengal.

- They are a group of islands known for their diverse ecosystem and tropical climate.

- Correct Answer

- Option 2: Lakshadweep

- This is not in the Bay of Bengal; it is in the Arabian Sea.

- They consist of small coral islands and are known for their marine life.

- Option 3: Diu

- Located off the coast of Gujarat in the Arabian Sea, not in the Bay of Bengal.

- Option 4: Daman

- Situated on the western coast of India along the Arabian Sea.