The city which is known as the city of Canals is :

Correct Answer: Venice
Explanation: Venice, Italy, is famously known as the "City of Canals" due to its extensive network of canals that serve as roads in the city. It is renowned for its beauty and historical architecture.

Incorrect Option 1: Italy
Explanation: Italy is the country where Venice is located, but the country itself is not known as the city of canals.

Incorrect Option 2: Rome
Explanation: Rome is Italy's capital, known for its historical significance and architecture, but it is not a city of canals.

Incorrect Option 3: Kashmir
Explanation: Kashmir is known for its beautiful landscapes and lakes, not for canals.

Incorrect Option 4: Dhaka
Explanation: Dhaka is the capital city of Bangladesh, known for its vibrant culture, but it is not famous for canals.