• Prepositions are words which are used to show the relationship between two nouns or pronouns in a sentence.
• Prepositions are usually placed before the nouns or pronouns they modify.
• In the given sentence, the problem is related to housing in India, thus the preposition of is used to indicate the relationship between the two words.
• The preposition in is used to indicate the relation between India and housing.
• Thus, the most appropriate preposition for the given sentence is of; in.

Hence, option B is the correct answer.

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