Explanation:

Shimla, a popular hill station and the capital of Himachal Pradesh, is situated in the Lesser Himalayas (also known as the Middle Himalayas or Himachal Range). This range is characterized by its picturesque valleys, hill stations, and moderate elevation. Option (1) The Greater Himalayas are too high and rugged for such settlements. Option (3) Lower Himalayas is often synonymous with Lesser Himalayas, but if distinct, refers to lower slopes. Option (4) The Outer Himalayas (Shiwaliks) are the lowest and southernmost range, and Shimla's elevation places it higher than the Shiwaliks.