Step 1: Understanding the project.
The Sharavati River Valley Project is a major hydroelectric project in Karnataka. It uses the water of the Sharavati River to generate electricity.
Step 2: Analyzing the options.
(A) Bihar: Incorrect, no such project.
(B) Karnataka: Correct — The project is located in Karnataka.
(C) Uttar Pradesh: Incorrect.
(D) Tamil Nadu: Incorrect.
Step 3: Conclusion.
The correct answer is (B) Karnataka.