Explanation
The smallest Indian Union Territory (UT) in terms of area is Lakshadweep. It is a group of islands located in the Arabian Sea, with an area of approximately 32 square kilometers and a population of around 64,000 people.
Chandigarh is a Union Territory and a city that serves as the capital of two Indian states, Punjab and Haryana. It has an area of approximately 114 square kilometers and a population of around 1.1 million people.
Andaman and Nicobar Islands is a group of islands located in the Bay of Bengal, with an area of approximately 8,249 square kilometers and a population of around 380,000 people.
Pondicherry, officially known as Puducherry, is a Union Territory located on the southeastern coast of India. It has an area of approximately 492 square kilometers and a population of around 1.2 million people.
Therefore, the answer is A: Lakshadweep.