The two settlements of the Indus Valley Civilisation that specialised in making shell objects were:

Nageshwar and Balakot

The correct answer is Option (3) → Nageshwar and Balakot

Nageshwar and Balakot, both settlements are near the coast. These were specialised centres for making shell objects – including bangles, ladles and inlay – which were taken to other settlements. Similarly, it is likely that finished products (such as beads) from Chanhudaro and Lothal were taken to the large urban centres such as Mohenjodaro and Harappa.