Ali is lying, hence ali is not the tallest.
Danial isn’t lying and is the shortest.
Clarice cannot be the tallest nor the shortest but definitely shorter than Ali.
Bala is hence the tallest as he is not the shortest.

Ranking: Danial, Clarice, Ali, Bala (from shortest)

Let’s consider the other scenarios

Bala cannot be lying as if he is, Danial can’t say he is the shortest. Since only one person is lying, Bala cannot be the one.

Similarly, Clarice cannot be lying as it would mean she is taller than Ali. Since only one person is lying, she can’t be the one lying.

Similarly, Danial cannot lie about being the shortest as it would contradict Ali’s statement. Since one person is lying, he can’t be the liar as well.

Hence, Ali is lying.