Step 1: Understanding the Question:
This question tests geographical facts about regional intergovernmental organizations, specifically the South Asian Association for Regional Cooperation (SAARC).
Step 2: Key Formulas and approach:
Distinguish between the city where the SAARC charter was signed (founding location) and the city hosting its permanent Secretariat (headquarters).
Step 3: Detailed Explanation:
• SAARC was established on December 8, 1985, when its charter was officially signed in Dhaka, Bangladesh.
• However, the permanent Secretariat (headquarters) of the association was established on January 16, 1987, in Kathmandu, Nepal.
• The Secretariat is headed by a Secretary-General and coordinates the regional activities of the eight member countries.
• The eight member states are Afghanistan, Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan, and Sri Lanka.
Step 4: Final Answer:
The headquarters of SAARC is located in Kathmandu, Nepal, which makes Option (A) the correct choice.