In which of the following Indian states is Lokrang festival observed?

Madhya Pradesh

The correct answer is Option (4) - Madhya Pradesh

The Lokrang festival is observed in Madhya Pradesh, India. This vibrant cultural festival celebrates the rich tribal and folk traditions of India through various art forms like music, dance, and performances. It is held annually in the city of Bhopal, typically starting on Republic Day (January 26^th).