Step 1: Analyzing the Harappan cities.
Chanhudaro is well known for its focus on craft production and industrial activities, particularly bead-making and seal carving.
Step 2: Analyzing the options.
- (A) Harappa: Although Harappa was an important city in the Harappan civilization, it was not solely focused on craft production.
- (B) Mohenjodaro: Mohenjodaro was an important city, but it was not exclusively dedicated to craft production either.
- (C) Chanhudaro: This city was renowned for its craft production, particularly in bead-making and metalworking.
- (D) Rakhigarhi: This is a significant site but not specifically known for exclusive craft production.
Step 3: Conclusion.
The correct answer is (C) Chanhudaro, as it was mainly dedicated to craft production.