Answer: B) Australian Capital Territory
Explanation: The Australian Capital Territory (ACT) is the smallest state or territory in Australia by area, covering just over 2,400 square kilometers. It is home to the national capital of Canberra, as well as a number of important national institutions, including Parliament House, the High Court of Australia, and the Australian War Memorial. Tasmania, Victoria, and the Northern Territory are all larger than the ACT in terms of area.