Concept:
The Panchayat Devolution Index (PDI) is prepared by the Indian Institute of Public Administration (IIPA) in collaboration with the Ministry of Panchayati Raj (MoPR).
The index evaluates the extent of decentralisation and devolution of powers to Panchayati Raj Institutions based on functions, finances, functionaries, capacity building and accountability.
Step 1: Recall the latest ranking.
According to the 2025 Panchayat Devolution Index,
\[
\boxed{\text{Kerala ranked first.}}
\]
Step 2: Examine the options.
• [(A)] Kerala -- Correct.
• [(B)] Gujarat -- Incorrect.
• [(C)] Maharashtra -- Incorrect.
• [(D)] Karnataka -- Incorrect.
Hence,
\[
\boxed{\text{Correct Answer}=(A)}
\]