Which of the following Indian cities is famously known as the City of Festivals because of its numerous temple festivals and cultural celebrations throughout the year?

Introduction / Context:
Indian cities often have popular nicknames based on their history, culture, or geography. These nicknames are frequently asked in general knowledge sections of competitive exams. One such title is City of Festivals, which refers to a city in Tamil Nadu that is especially famous for its temples and festivals celebrated almost all year round.

Given Data / Assumptions:

• The nickname in question is City of Festivals.
• We are asked to identify the correct city from the list.
• All options are important religious or cultural cities in India.
• We assume the nickname being tested comes from standard school and exam oriented general knowledge.

Concept / Approach:
Madurai in Tamil Nadu is a major temple city known for the Meenakshi Amman Temple and many other shrines. A wide variety of religious and cultural festivals are observed there, which has earned Madurai the nickname City of Festivals along with other titles such as Temple City and Athens of the East. Varanasi, Puri, Bhubaneswar, and Ujjain are also important religious cities but have different common nicknames in most GK references.

Step-by-Step Solution:
Step 1: Read the phrase City of Festivals and connect it with known Indian cities and their nicknames. Step 2: Recall that Madurai is often described as the cultural capital of Tamil Nadu and is famous for a large number of festivals. Step 3: Note that Varanasi is usually called the spiritual capital of India or the city of temples, and Puri is associated with the Jagannath Temple and Rath Yatra. Step 4: Bhubaneswar is the city of temples in Odisha and Ujjain is known as a temple town with the Mahakaleshwar Jyotirlinga, but City of Festivals is not their most common standard nickname in GK books. Step 5: Therefore, select Madurai as the city known as the City of Festivals.

Verification / Alternative check:
To verify, you can look at standard general knowledge guides or geography books that list Indian cities and their special titles. They consistently mention Madurai as City of Festivals due to its intense festival calendar and cultural activities centred around the Meenakshi temple and other religious sites. The other cities are certainly important but are famous for different specific titles.

Why Other Options Are Wrong:

• Varanasi: Known as Kashi or Benaras and often described as the spiritual capital of India, not primarily as City of Festivals in exam oriented nicknames.
• Puri: Famous for Lord Jagannath Temple and the annual Rath Yatra, often associated with the term spiritual capital of Odisha.
• Bhubaneswar: Frequently called the Temple City of India because of its many ancient temples.
• Ujjain: Important as one of the sites of the Kumbh Mela and for the Mahakaleshwar temple, but not the one generally tagged as City of Festivals in GK lists.

Common Pitfalls:
Many learners assume that any prominent temple city could be called City of Festivals and may guess Varanasi or Puri based on their religious significance. Without specifically memorising nicknames, it is easy to mix them up. A systematic list of cities and their titles, revised regularly, helps avoid these errors.

Final Answer:
The city popularly known as the City of Festivals is Madurai, so the correct option is Madurai.