The correct answer is option 2 - Balakot. Balakot is known as a specialized center for making shell objects during the Harappan civilization. The Harappan civilization, also known as the Indus Valley civilization, was an ancient Bronze Age civilization that flourished in the Indus Valley region in present-day Pakistan and northwestern India. It existed from approximately 3300 BCE to 1300 BCE.

Balakot, located in present-day Pakistan, was one of the many Harappan sites. Archaeological excavations at Balakot have revealed a large number of shell objects, including bangles, beads, and ornaments. These shell objects were made from various types of marine shells found along the coast of the Arabian Sea.

The presence of a large number of shell objects and the absence of other types of artifact production in Balakot suggest that it was a specialized center for shell craft during the Harappan period. This specialization indicates that Balakot had access to trade networks that brought shells from the coast to the interior regions, allowing the inhabitants to create elaborate shell objects.