The correct option is National Capital Territory of Delhi.
Explanation
Population density is a measurement of population per unit area, typically expressed as the number of persons per square kilometer. In the context of Indian demography, the Census 2011 data serves as the primary reference for these statistics.
A comparison of the population density for the given Union Territories (as per Census 2011) is as follows:
- National Capital Territory of Delhi: 11,320 persons per sq. km.
- Chandigarh: 9,258 persons per sq. km.
- Puducherry: 2,547 persons per sq. km.
- Daman and Diu: 2,191 persons per sq. km.
The National Capital Territory of Delhi records the highest population density not only among the given options but among all States and Union Territories in India.
Key Takeaway: According to Census 2011, Delhi has the highest population density in India (11,320), followed by Chandigarh (9,258). Among states, Bihar has the highest density (1,106).