Step 1: Understand the term 'Praja Kavi' and its significance in Telangana literature.
'Praja Kavi' translates to 'People's Poet', signifying a poet who connects deeply with the common people, reflects their aspirations, struggles, and voices their concerns through their poetry. This title is usually associated with a specific, highly regarded literary figure in a region.
Step 2: Evaluate each option in the context of their contributions to Telugu literature and their popular epithets.
(1) Kalooji Narayana Rao: Kaloji Narayana Rao (often known simply as Kaloji) was a celebrated Indian poet, freedom fighter, and political activist from Telangana. His works were known for their simplicity, directness, and strong advocacy for social justice and the rights of the common people. He is widely and affectionately known as 'Praja Kavi' of Telangana.
(2) C. Narayana Reddy: Cingireddy Narayana Reddy, popularly known as CiNaRe, was an eminent Telugu poet, writer, and lyricist. He was a recipient of the Jnanpith Award, India's highest literary honor. While highly influential, 'Praja Kavi' is not his primary recognized title.
(3) Dasarathi Krishnamacharyulu: Dasarathi Krishnamacharyulu was a revolutionary Telugu poet and writer. He was known for his powerful, fiery poetry, particularly against the Nizam's rule in Hyderabad State. His title is often associated with his revolutionary spirit, but not specifically 'Praja Kavi'.
(4) Gorati Venkanna: Gorati Venkanna is a contemporary Telugu folk singer and poet known for his songs depicting rural life and issues. While he is a poet of the people, the historical title 'Praja Kavi' specifically refers to Kaloji Narayana Rao.
Step 3: Conclude the correct personality.
Kalooji Narayana Rao is widely recognized and revered as 'Praja Kavi' (People's Poet) of Telangana due to his profound connection with the masses and his impactful poetry.