The correct answer for this question is option 3, Pondicherry. In April-May 1996, an election was held for the legislature of Pondicherry, which is a Union Territory in India.
Let`s now analyze the other options:
Option 1, Andaman and Nicobar Islands: While Andaman and Nicobar Islands is also a Union Territory in India, there is no mention of an election being held for its legislature in April-May 1996.
Option 2, Delhi: Delhi is the National Capital Territory of India and has a Legislative Assembly. However, the question specifically asks about the Union Territory for which an election was held in April-May 1996. Thus, option 2 is not the correct answer.
Option 4, Lakshadweep: Lakshadweep is another Union Territory in India. However, there is no mention of an election being held for its legislature in April-May 1996.
Therefore, the correct option is 3, Pondicherry, as an election was held for its legislature in April-May 1996.