Step 1: Recall the fact:
Most of Amrita Sher-Gil's works are kept in the National Gallery of Modern Art (NGMA), New Delhi. The Government of India has declared her works National Art Treasures.
Step 2: Check the options:
So (C) is correct.
(A) Indian Museum, Kolkata: it is mainly known for archaeology, natural history and old art.
(B) Prince of Wales Museum, Mumbai: it holds a mixed collection of art and antiques.
(D) Himachal State Museum, Shimla: it is known for Pahari art and local culture.
Final Answer:
(C) National Gallery of Modern Art, New Delhi