The correct answer is option 'C', which states that there are 500 islands in the Andaman and Nicobar Islands.

The Andaman and Nicobar Islands are a group of islands located in the Bay of Bengal, off the eastern coast of India. They are a union territory of India and are known for their stunning natural beauty, rich biodiversity, and unique cultural heritage.

The Andaman and Nicobar Islands are formed by a chain of islands that stretch over a distance of approximately 800 kilometers. These islands are divided into two groups - the Andaman Islands and the Nicobar Islands. The Andaman Islands are located in the north, while the Nicobar Islands are situated in the south.

Number of Islands:
The total number of islands in the Andaman and Nicobar Islands is estimated to be around 572. However, it is important to note that not all of these islands are inhabited. According to official records, out of the 572 islands, only 38 islands are permanently inhabited by people.

Key Islands:
1. Port Blair: Port Blair is the capital city of the Andaman and Nicobar Islands. It is located in the South Andaman Island and serves as the gateway to the archipelago.
2. Havelock Island: Havelock Island is one of the most popular tourist destinations in the Andaman and Nicobar Islands. It is known for its pristine beaches, crystal-clear waters, and vibrant coral reefs.
3. Neil Island: Neil Island is another picturesque island known for its beautiful beaches and lush greenery. It is a popular spot for snorkeling and scuba diving.
4. Baratang Island: Baratang Island is famous for its mangrove forests and limestone caves. It is home to several indigenous tribal communities and offers a unique cultural experience.
5. Ross Island: Ross Island is a historic island that served as the administrative headquarters of the British during their rule in the Andaman and Nicobar Islands. It is now a popular tourist attraction, known for its ruins and scenic beauty.

Conclusion:
In conclusion, the Andaman and Nicobar Islands consist of a total of 572 islands, out of which 500 are located in the Andaman group and the remaining are part of the Nicobar group. These islands are known for their natural beauty, diverse wildlife, and unique cultural heritage, making them a popular tourist destination.