Directions: Select the correct option to answer the question.

Every year, which northeastern Indian state hosts the grand 'Hornbill Festival' to highlight the rich traditions, crafts, and performing arts of its native ethnic groups?

The correct option is Nagaland.

Key Points & Explanation:
1. The Hornbill Festival is a renowned annual cultural event celebrated in the northeastern Indian state of Nagaland.
2. It takes place every year from December 1 to December 10 at the Naga Heritage Village in Kisama, near the state capital, Kohima.
3. Often referred to as the "Festival of Festivals", it brings together all the ethnic tribes of Nagaland to showcase their rich traditions, indigenous crafts, music, dance forms, traditional games, and culinary arts.
4. The festival is named after the Indian Hornbill, a large forest bird that holds a central place in the folklore, songs, and cultural traditions of the Naga tribes.