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If the question is
Where do you live?
Then what is the answer to that:
A) I live in (village name) /
B) I live at (village name)

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Answer
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Hint: One of the nine parts of speech is the preposition.``Place BEFORE" is the meaning of the preposition (pre + position). A preposition is usually placed before another word, most commonly a noun phrase. It explains the connection between the noun phrase and the rest of the sentence. Prepositions like in, of, on, for, with, at, and by are very common.

Complete answer:
The location of a person or thing in relation to another is described by prepositions of place. When discussing the location of items, we commonly use the words at, in, and on.
The number of dimensions to which a preposition refers varies. Using geometric ideas, we can divide them into three categories: point, surface.
Point: This group of prepositions denotes that the noun after them is viewed as a point in relation to which another item is positioned.

Surface: This group of prepositions denotes that an object's position is determined in relation to the surface on which it rests.

The word "at" can be used to express a particularly specific point or location. Examples: At the top of the stairs, there is a cat.
It can also be used to depict a precise address that includes both the street name and the street number.

The preposition "in" is used to describe an enclosed space or a location that is bounded by walls. Examples: The dog is in the backyard.
The preposition "in" is frequently used to refer to towns and cities. For towns and cities, we do not use the word "at" in English.

Thus, the correct answer is ‘I live in (village name)’ i.e, option ‘B’ is the correct option.

Note: Here are some prepositional rules:
- Prepositions must have an object
- It must be placed before everything else.
- The object form of the pronoun after the preposition should be used.
- Prepositions must be formed.
- Don't mix up the preposition 'to' with the infinitive 'to'.
- A verb cannot be the object of a preposition