Andaman and Nicobar Islands comprise 572 islands with a total geographical area of about 8,249 sq km, 0.25% of the total geographical area of India. So its the largest island in India in terms of area. Whereas Lakshadweep Its total geographical area is only 30 sq km and Daman and Diu was a union territory in western India. With an area of 112 square km. While Dadra and Nagar Haveli’s total area is 491 square km.
From the above data, it’s clear that Andaman and Nicobar is the largest island in India in terms of area. So the correct option is C.