Option 1 -> 8 states: This represents the actual number of renewable-rich states covered under the sanctioned scheme for improving power infrastructure.
Option 2 -> 6 states: This is fewer than the actual number of states included in the transmission and distribution scheme.
Option 3 -> 4 states: This significantly underestimates the scope of the intra-state power transmission project.
Option 4 -> 7 states: This is close but still less than the actual number of states covered under the scheme.
Hence, Option 1 (8 states) -> The Government of India sanctioned the intra-state power transmission and distribution scheme for 8 renewable-rich states to strengthen evacuation infrastructure and reduce renewable energy curtailment, enabling better grid integration of solar and wind power -> correct