Explanation
Why Correct: Kanishka, the greatest Kushan emperor, established his capital at Purushpur (modern Peshawar, Pakistan), which became a major center of Buddhist art and trade.
Distractor Analysis: Jalandhar was an important city in the Punjab region but not a Kushan capital. Kashmir refers to the region where Kanishka held the Fourth Buddhist Council, not his capital. Pataliputra served as the Mauryan capital under Ashoka, not the Kushan capital.
Takeaway: Kanishka's empire stretched from Central Asia to northern India, and he issued gold coins featuring Greek, Iranian, and Indian deities, reflecting his empire's cultural diversity.