Discussion
The Government of India is concerned with the __________ digital literacy prevalent in India.
Answer: D
The correct filler is low levels of: the Government is concerned with the low levels of digital literacy prevalent in India.
Literacy, income and similar measures are described as high or low, so low levels is the natural collocation, and it fits the sense, since a government is concerned about a shortfall.
Tiniest is a superlative of size, used of physical things, not of a rate. Superb means excellent and contradicts the idea of concern. Smaller is a comparative and needs something to be compared with (smaller than what?), which the sentence does not supply.
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