Option 1 -> Kakrapar in Gujarat, Narora in Uttar Pradesh, Kaiga in Karnataka, Tarapur in Maharashtra - all correctly matched.
Option 2 -> Incorrectly places Kaiga in Maharashtra and Tarapur in Karnataka (reversed).
Option 3 -> Incorrectly places Kakrapar in Uttar Pradesh and Narora in Gujarat (reversed).
Option 4 -> Multiple incorrect matches with Kakrapar-UP, Narora-Gujarat, Kaiga-Maharashtra, Tarapur-Karnataka.
Hence, **Option 1: (A) - (III), (B) - (I), (C) - (II), (D) - (IV)** -> Kakrapar Atomic Power Station is located in Surat district, Gujarat; Narora Atomic Power Station is in Bulandshahr district, Uttar Pradesh; Kaiga Generating Station is in Uttara Kannada district, Karnataka; and Tarapur Atomic Power Station is in Palghar district, Maharashtra -> **correct**