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The correct answer is option 1, which is Maharashtra. Maharashtra has recently proposed to frame the first Internal Security Act to handle issues related to terrorism, insurgency, communalism, and caste violence.
Option 2, Gujarat, is incorrect as it is not the state that has proposed this act. Gujarat is not currently in the process of framing an Internal Security Act.
Option 3, Uttar Pradesh, is also incorrect as it is not the state that has proposed the act. Uttar Pradesh has not announced any plans to frame an Internal Security Act recently.
Option 4, Chhattisgarh, is also incorrect as it is not the state that has proposed the act. Chhattisgarh has not made any announcements regarding the framing of an Internal Security Act.
Therefore, the correct answer is Maharashtra, as it is the state of India that has recently proposed to frame the first Internal Security Act to tackle the challenges of terrorism, insurgency, communalism, and caste violence.