The correct answer is option 'C' - China.

China is home to the world's largest ice festival, known as the Harbin International Ice and Snow Sculpture Festival. This annual event takes place in Harbin, the capital city of Heilongjiang province in northeastern China. The festival is renowned for its spectacular ice sculptures, intricate designs, and grand scale.

1. Harbin International Ice and Snow Sculpture Festival:
- The Harbin International Ice and Snow Sculpture Festival is one of the most famous winter festivals in the world.
- It has been held annually since 1963 and attracts millions of visitors from around the globe.
- The festival usually begins on January 5th and lasts for about one month, but some of the exhibits are open until late February or early March, depending on weather conditions.

2. Location:
- Harbin, the host city for the festival, experiences extremely cold winters, with temperatures dropping well below freezing.
- The freezing temperatures and the city's proximity to the Siberian region make it an ideal location for hosting such a grand ice festival.

3. Ice Sculptures and Attractions:
- The main highlight of the festival is the incredible ice sculptures, which are made from blocks of ice taken from the nearby Songhua River.
- Skilled artists and sculptors from all over the world come to Harbin to create intricate and massive ice sculptures.
- These sculptures range from famous landmarks, such as the Great Wall of China and iconic buildings, to animals, mythical creatures, and even ice slides for visitors to enjoy.
- The sculptures are beautifully lit up at night, creating a magical and enchanting atmosphere.

4. Activities and Events:
- In addition to the stunning ice sculptures, the festival offers a wide range of activities and events for visitors to enjoy.
- These include ice skating, ice hockey, snowboarding, ice lantern shows, fireworks displays, and traditional performances.
- There are also various competitions, such as ice sculpture competitions and winter swimming contests.

5. Growth and Popularity:
- Over the years, the Harbin International Ice and Snow Sculpture Festival has grown in size and popularity.
- It has become a major tourist attraction, drawing visitors from all over the world who come to marvel at the impressive ice sculptures and experience the unique winter wonderland.

In conclusion, the world's largest ice festival, the Harbin International Ice and Snow Sculpture Festival, takes place in Harbin, China. This annual event showcases incredible ice sculptures created by talented artists, and it attracts millions of visitors who come to witness the magical winter spectacle.