Explanation:

- Gujarat ranked first in the Export Preparedness Index 2020 released by NITI Aayog. This index assesses the performance of Indian states in terms of their preparedness to engage in international trade.

- The Index evaluates states based on four main pillars: Policy, Business Ecosystem, Export Ecosystem, and Export Performance.

- Gujarat, with its strong industrial base, robust infrastructure, and favorable business policies, emerged as the leader.

- Andhra Pradesh, Telangana, and Maharashtra were other strong performers in the index, showcasing their capabilities in various sectors, but they did not top the list.

- The purpose of the index is to highlight the strengths and weaknesses of states in export facilitation, encouraging competitive federalism.

The correct answer is: Option 2: Gujarat.