In Part VIII of the Constitution of India, the Parliament is empowered to create local legislature and…

The correct choice is: “NCT of Delhi, Puducherry and Jammu & Kashmir”

Part VIII provides for legislatures in Union Territories in two ways. Article 239A lets Parliament create a legislature and council of ministers for Puducherry (done by the Government of Union Territories Act, 1963). Article 239AA itself gives the National Capital Territory of Delhi a Legislative Assembly and Council of Ministers. The Jammu and Kashmir Reorganisation Act, 2019 (Section 13) extended Article 239A to the new Union Territory of Jammu & Kashmir and provided it with a Legislative Assembly and Council of Ministers. So, by law, three UTs have them: Delhi, Puducherry and J&K. (Ladakh was created without a legislature, and Chandigarh has none.)

“NCT of Delhi and Puducherry” was correct before 2019 and leaves out J&K. (No elected J&K assembly had actually been constituted as of July 2021; the first election was held in 2024.)