Option A is incorrect: The passage notes that “each State in India faces a distinctive set of challenges,” but it does not imply that climate action is solely the responsibility of individual States. The emphasis is on tailoring strategies to local conditions, not on assigning exclusive responsibility.

Option B is incorrect: While the passage highlights India’s diversity in climate and geography, it portrays this diversity as an opportunity, not an obstacle. It mentions that different regions offer unique resources—like wind potential or monsoon adaptation prospects—which can aid in addressing climate change. Thus, saying India is “too diverse” to act effectively contradicts the author’s positive framing.

Option C is incorrect: The passage does not emphasize centralised control or the exclusive responsibility of the Union Government. Instead, it focuses on localised responses—each State developing strategies based on its specific challenges and opportunities.

Option D is correct: The passage’s key message is that region-specific strategies are essential. It explicitly mentions that each region—coastal, dry, Himalayan, or peninsular—faces distinct climate-related issues and possesses unique potential for emission reduction. Therefore, climate change mitigation and adaptation efforts must be designed and implemented at the State or regional level, considering these variations.

Hence, the correct answer is D.