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Option 1 : With a temperate climate
The correct preposition here would be 'with' as someone is 'blessed with' something. It is used to signify that a place has something that you feel is special or lucky. The word 'climates' cannot be used here as one place can have a particular type of climate so the article 'a' must be used here.
Thus, option 1 is the correct answer.
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