Can dataset be stored in a viewstate?

This can be a tricky question in interviews.
Yes, a dataset may be stored in a viewstate. However, a viewstate is passed to the server as a hidden variable. Precaution should be taken that the dataset size is not too big, otherwise such an activity will take a toll on both the client and server system resources, and ultimately slow down rendering of the data on the client system. Also note that the viewstate data may not be sent to another aspx page, as thats a limitation of a viewstate object.

For more on how to save information on a viewstate Click Here.