The site of Hathnora, located in the Narmada Valley, is significant because it is here that human fossils have been found in situ alongside Palaeolithic tools.
Specifically, fossilized remains, including a fragment of a Homo erectus cranium, were discovered embedded in geological strata (in situ) indicating their original depositional context. Associated with these fossils were stone tools characteristic of the Palaeolithic period.
This finding provides crucial evidence linking early human presence directly with the tools they used at that specific location and time.
Therefore, Hathnora is the correct answer for where human fossils have been found in situ with palaeolithic tools.