This is a town in the Indian state of Uttarakhand in the Kumaon foothills of the outer Himalayas. China peak is the highest peak in the town, with an altitude of 2,615 m (8,579 ft). Identify this town.

Nainital is the correct answer. It is situated in the Kumaon foothills of the outer Himalayas in Uttarakhand. China Peak (also known as Naina Peak) is indeed the highest point in Nainital at 2,615 meters. Haridwar is a pilgrimage city in the plains, Uttarkashi is in the Garhwal region, and Rudraprayag is a town at the confluence of rivers, not a hill station with China Peak.