All of the groups of islands listed are to be found in, or near, South America. Let us begin with the wrong answers

-- The Ballestas Islands are off the coast of Peru.

-- The Guañape Islands also lie off the coast of Peru.

-- The Falkland Islands form an archipelago in the South Atlantic Ocean on the Patagonian Shelf.

The Malvinas Islands is the name of a group of islands located south of Puerto Sánchez in the General Carrera Lake, Aisén Region of Chile. General Carrera Lake (as it is known in Chile) or Lake Buenos Aires (as it is known in Argentina) is a lake located in Patagonia and shared by Argentina and Chile. Both names are internationally accepted.

General Carrera Lake is of glacial origin and is surrounded by the Andes mountain range, as shown in the picture. The lake drains to the Pacific Ocean on the west through the Baker River.

More Info: en.wikipedia.org