Which union territory has the highest literacy rate?

Explanation

**Step-by-Step Solution:**

1. **Identify the Question**: The question asks which Union Territory has the highest literacy rate.

2. **Refer to Relevant Data**: To answer this question, we need to refer to the census data, specifically the 2011 census, which provides information on literacy rates across different regions in India.

3. **Locate the Union Territory with the Highest Literacy Rate**: According to the 2011 census data, Lakshadweep is identified as the Union Territory with the highest literacy rate.

...