The correct answer is option 'D', Odisha.

Explanation:
Kotia cluster is a disputed area between Andhra Pradesh and Odisha. It is a group of three villages namely Kotia, Phatuseneri, and Phagunaseneri, located in the Koraput district of Odisha. These villages have been a subject of contention between the two states for several decades.

The dispute between Andhra Pradesh and Odisha over the Kotia cluster dates back to the 1960s. Andhra Pradesh claims that these villages fall within the boundaries of its Salur Mandal in the Vizianagaram district. On the other hand, Odisha asserts that these villages are part of the Pottangi block in its Koraput district.

Over the years, the dispute has remained unresolved, leading to tensions between the two states. Both Andhra Pradesh and Odisha have been claiming jurisdiction over the Kotia cluster and have established administrative control in the region. This has resulted in overlapping governance, with both states carrying out development activities and providing public services in the area.

The conflict escalated recently when Andhra Pradesh conducted panchayat elections in the Kotia cluster. Odisha opposed these elections, arguing that the villages are under its administrative control. The matter reached the Supreme Court, which directed the Odisha government to maintain the status quo in the disputed region.

The Kotia cluster dispute highlights the long-standing border issues between states in India. Such disputes often arise due to differences in historical claims, administrative boundaries, and conflicting interpretations of legal documents. Resolving these disputes requires diplomatic negotiations, legal interventions, and adherence to constitutional provisions.

In conclusion, the Kotia cluster dispute is between Andhra Pradesh and Odisha. The two states have been at odds over the jurisdiction of these villages for decades, leading to tensions and overlapping governance in the region.