Step 1: Identify the likely infection. An outbreak of encephalitis in a community under the universal immunization schedule context refers to Japanese Encephalitis (JE), which is the commonest cause of epidemic viral encephalitis and is included in India's Universal Immunization Programme (UIP) for endemic districts.
Step 2: Identify the vaccine type used under the National Programme. Under India's National Immunisation Programme, the cell culture-derived live attenuated SA 14-14-2 strain JE vaccine is used. This is a live attenuated vaccine, manufactured in P. R. China and imported for use in India.
Step 3: Identify the route of administration. The live attenuated JE vaccine is administered via the subcutaneous route (0.5 mL dose, left upper arm). The schedule under the National Immunisation Schedule includes two doses -- first at 9-12 months (with measles) and second at 16-24 months (with DPT and OPV booster).
Step 4: Eliminate distractors. Killed JE vaccines exist (mouse brain-derived inactivated and cell culture-derived inactivated) but are not used under the Indian national programme. Intramuscular route applies to killed JE vaccines used in some other countries, not the live vaccine used in India.
Conclusion: The correct answer is Live & subcutaneous.