Concept:
Ancient and early medieval Sanskrit literature contains several important literary compositions, dramas, mahakavyas, and historical plays. Many competitive examinations ask matching questions related to famous works and their authors. To solve such questions effectively, one must remember the association between classical Sanskrit texts and their composers.
Step 1: Identify the author of Shishupalavadha.
Shishupalavadha is a famous Sanskrit mahakavya written by:
\[
Magha
\]
This literary work narrates the killing of Shishupala by Lord Krishna and is celebrated for its poetic excellence and elaborate style.
Thus,
\[
A \rightarrow III
\]
Step 2: Match Naishedhacharita correctly.
Naishedhacharita was composed by:
\[
Sri Harsha
\]
The work is based on the story of Nala and Damayanti and is regarded as one of the finest Sanskrit mahakavyas.
Therefore,
\[
B \rightarrow IV
\]
Step 3: Identify the author of Devichandraguptam.
Devichandraguptam is associated with:
\[
Vishakhadutta
\]
Vishakhadutta is also famous for another political drama called Mudrarakshasa.
Hence,
\[
C \rightarrow I
\]
Step 4: Match Nagananda.
Nagananda was written by:
\[
Harshavardhana
\]
Harsha was not only a ruler but also a distinguished patron of literature and playwright.
Thus,
\[
D \rightarrow II
\]
Step 5: Write the complete correct matching.
Combining all pairs:
\[
A-III,\; B-IV,\; C-I,\; D-II
\]
Therefore the correct answer is:
\[
\boxed{\text{Option (3)}}
\]
Verification of Other Options:
• Option (1) is incorrect because Shishupalavadha was not written by Vishakhadutta.
• Option (2) incorrectly matches Naishedhacharita.
• Option (4) incorrectly associates Devichandraguptam.
• Option (3) correctly matches every literary work with its author.